Asked by Elizabeth Welch on Jul 20, 2024
Verified
When one automaker acquires another automaker the acquisition is classified as a:
A) Leveraged buyout.
B) Vertical acquisition.
C) Strategic alliance.
D) Conglomerate acquisition.
E) Horizontal acquisition.
Horizontal Acquisition
A business strategy where a company acquires another in the same industry and at the same level of the supply chain.
Automaker
A company that manufactures and sells vehicles, including cars, trucks, and motorcycles.
Acquires
Obtains ownership or control of another company or asset through purchase or merger.
- Achieve an understanding of the assorted types of mergers and acquisitions.
Verified Answer
AM
Alexis MiddletonJul 27, 2024
Final Answer :
E
Explanation :
When one automaker acquires another automaker, it is considered a horizontal acquisition because both companies operate in the same industry and are at the same level in the supply chain. This type of acquisition is aimed at consolidating market position, reducing competition, or achieving economies of scale.
Learning Objectives
- Achieve an understanding of the assorted types of mergers and acquisitions.