Asked by Luisa Fernanda Bohorquez on May 21, 2024
Verified
A merger between McDonald's and Burger King would be an example of a
A) conglomerate merger.
B) horizontal merger.
C) vertical merger.
D) parallel merger.
Horizontal Merger
A merger between firms in the same industry operating at the same level of the production process, often aimed at reducing competition and achieving economies of scale.
Conglomerate Merger
A type of merger where two or more companies operating in completely different industries join forces or come under the control of one company.
Vertical Merger
A merger between two companies that operate at different stages within the same industry supply chain, enhancing efficiency or reducing costs.
- Identify and separate the distinct kinds of mergers, namely horizontal, vertical, and conglomerate.
Verified Answer
JB
Javier BanegasMay 28, 2024
Final Answer :
B
Explanation :
A merger between McDonald's and Burger King, both of which operate in the fast food industry and are direct competitors, would be an example of a horizontal merger. This type of merger occurs between companies that operate in the same industry and are at the same stage of production.
Learning Objectives
- Identify and separate the distinct kinds of mergers, namely horizontal, vertical, and conglomerate.