Question

Example of a horizontal merger is (are) the following: A. Starbucks and the gasoline dealership. B....

Example of a horizontal merger is (are) the following:

A.

Starbucks and the gasoline dealership.

B.

Airlines and the gasoline companies.

C.

NBC and GE.

D.

Burger King and Wendy's.

E.

GM and the plastic makers

F.

Honda and a truck manufacturer.

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Answer #1

Correct Answer:

D

F

The horizontal mergers are the mergers that take place between the firms who operate in the same industry. On this basis, Wendy's and Burger king operate in the same industry with their own restaurant chains. So, merger between them, is considered to the horizontal merger. Further, Honda and truck manufacturer are the part of automobile industry. So, merger between these two companies should be treated as horizontal merger.

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