Which one of the following is considered a horizontal Merger? b. Ford merges with General Motors...

Which one of the following is considered a horizontal Merger?

b. Ford merges with General Motors d. Socialism and Communism c. Ford merges with McDonalds a. Ford merges with Goodyear Tire

Solutions

Expert Solution

Horizontal Merger means a merger between companies working in the same field, producing same kind of product. When competition is higher in the market, a merger between similar companies raises the market share. It also reduces competition and costs also reduce.

The correct answer to your question is:

(b.) Ford merges with General Motors is a horizontal merger. General motors and ford, both belong to the same industry i.e. automobile industry, hence their merger would be horizontal one

This proves that other options are wrong because

(d.) socialism and communism are two very different topics. They do have a common point that both encourage public or state ownership. Whereas, communism can be also considered a little part of socialism. So no horizontal merger.

(c.) Ford teamed up with McDonald’s to use their food waste for car parts. This is also not horizontal merger as bith the firms belong to two different fields.

(a.) Merger of Ford with Goodyear tire is an example of vertical merger. Because vertical merger means two companies that have different supply chain functions but for a common product merge.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Take the 2012 10k for General Motors and Ford Motor Company. Please compare the following financial...

Take the 2012 10k for General Motors and Ford Motor Company. Please compare the following financial ratios: Current Ratio Profit Margin Times Interest earned Debt to assets ratio Return on Assets Return on Equity Inventory Turnover Ratio Asset Turnover Ratio Please compare the results of the ratio, explain how the firms compare with each other and make operational suggestions on how the company could improve its ratio. This submission should be no less than two pages and no more than...

In the years leading up to the 2008 recession, General Motors, Ford, and Chrysler (the big...

In the years leading up to the 2008 recession, General Motors, Ford, and Chrysler (the big three) were producing new vehicles in excess of market demand. This led to large inventories on car dealer’s lots across the United States. At the same time, under the absorption costing method, profits were rising and executives at these three companies were achieving their short-term incentive targets. Explain how firms can increase net operating income simply by producing more units under the absorption costing...

In the years leading up to the 2008 recession, General Motors, Ford, and Chrysler (the big...

Which of the following is not considered direct evidence of anticompetitive effects in merger analysis? a....

Which of the following is not considered direct evidence of anticompetitive effects in merger analysis? a. natural experiments and actual effects from consummated mergers b. elimination of a maverick firm c. evidence of head-to-head competition d. critical loss analysis

The shares of the U.S. automobile market held in 1990 by General Motors, Japanese manufacturers, Ford,...

The shares of the U.S. automobile market held in 1990 by General Motors, Japanese manufacturers, Ford, Chrysler, and other manufacturers were, respectively, 34%, 32%, 19%, 9%, and 6%. Suppose that a new survey of 1,000 new-car buyers shows the following purchase frequencies: GM Japanese Ford Chrysler Other 397 259 231 80 33 (a) Show that it is appropriate to carry out a chi-square test using these data. Each expected value is ≥ (b) Test to determine whether the current market...

General Motors and Ford use the last-in, first-out (LIFO) method to value their inventories. Honda (of...

General Motors and Ford use the last-in, first-out (LIFO) method to value their inventories. Honda (of Japan) and Daimler-Benz (manufacturer of Mercedes-Benz of Germany) use the firstin, first-out (FIFO) method. Under LIFO, recent costs are expensed as cost of goods sold; under FIFO, older costs are expensed as cost of goods sold. Required:  Given the income statement effects of LIFO versus FIFO, how will the balance sheet inventory amounts differ between General Motors and Ford versus Honda and DaimlerBenz?...

General Motors, Toyota, Ford and Honda acquire batteries, engines , brake systems and other key inputs...

General Motors, Toyota, Ford and Honda acquire batteries, engines , brake systems and other key inputs from firms that specialize in producing those inputs efficiently thereby reducing the average cost of the automobile production . In case of coffee however the land for producing is widely available so the per unit cost remains the same as the volume of coffee produced grows. With clear diagrams explain the concept of returns to scale from the above example.

1) (Merger Policy) Answer the following question based on the horizontal mergers guidelines. a) Which agencies...

1) (Merger Policy) Answer the following question based on the horizontal mergers guidelines. a) Which agencies in the US deal with mergers? b) Market definition is very important yet often controversial in merger cases. The merger guidelines discuss the issue of market definition at length write a couple of sentences about this issue based on what you read in the document. Is there a unique way to define a market? c) How do the agencies define "Highly Concentrated Markets"? d)...

Which component of GDP will be affected by each of the following transactions involving General Motors?...

Which component of GDP will be affected by each of the following transactions involving General Motors? If you believe that a transaction will affect all of the components of GDP, briefly explain why. a. you purchase a new Chevrolet Silverado pick up from a GM dealer. b. You purchase a 2017 Chevrolet Silverado from a friend. c. GM purchases door handles for the Silverado from an auto parts manufacturer in Indiana. d. GM produces 1,000 Silverado‘s in a factory in...

Which of the following is a FALSE statement? A. General Motors of Canada permanently closing down...

Which of the following is a FALSE statement? A. General Motors of Canada permanently closing down its Oshawa car plant effective December 19, 2019, will decrease aggregate expenditure. B. The Canadian federal government's March 18, 2020 fiscal stimulus announcement of 82 billion dollars in response to the COVID-19 crisis will, ceteris paribus, increase aggregate expenditure. C. The Canadian federal government's March 18, 2020 fiscal stimulus announcement of 82 billion dollars in response to the COVID-19 is an example of an...

Subjects