Question

Which of the following statements is most correct?

Group of answer choices

If a company which produces military equipment merges with a company which manages a chain of motels, this is an example of a horizontal merger.

If a company which produces gasoline and oil products merges with a company which manages a chain of gas stations, this is an example of a vertical merger.

If a company buys a firm that is not in the same industry, this is an example of efficient diversification.

If a manufacturing company merges with a retail firm, this is an example of monopolistic combination.

If a manager opposes a merger, this is always considered to be an example of selfish, but not illegal behavior.

Answer 1

Solution>

The correct answer is an option (E).

If a manager opposes a merger, this is always considered to be an example of selfish, but not illegal behavior.

A company producing military equipment and a company managing a chain of motels are not a part of same industry, hence there cannot be a horizontal merger.

A company producing gasoline and oil products and a company managing a chain of gas stations are not a part of same supply chain, hence there cannot be a vertical merger.

If a company buys a firm that is not in the same industry, this is not an example of efficient diversification.

If a manufacturing company merges with a retail firm, this is not an example of monopolistic combination.

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