If two firms doing the same thing in the same industry join together, this is known as a ?
Correct answer: B. horizontal merger
- A. vertical merger
- B. horizontal merger
- C. conglomerate merger
- D. hostile takeover
Explanation
A horizontal merger combines firms operating at the same stage of production in the same industry, such as two competing manufacturers. A vertical merger instead joins firms at different stages of the supply chain.
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