Toyota acquiring Honda would be an example of:Question 25Select one:a.Vertical mergerb.None of thesec.Conglomerate mergerd.All of thesee.Horizontal merger
Question
Toyota acquiring Honda would be an example of:
Question 25
Select one:
- a. Vertical merger
- b. None of these
- c. Conglomerate merger
- d. All of these
- e. Horizontal merger
Solution
To analyze the question regarding Toyota acquiring Honda, we need to understand the types of mergers:
-
Vertical Merger: This occurs between companies at different stages of production in the same industry (e.g., a manufacturer acquiring a supplier).
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Horizontal Merger: This involves companies at the same stage of production in the same industry (e.g., two manufacturers in the automotive industry merging).
-
Conglomerate Merger: This entails two companies in different industries merging, which does not apply in this scenario.
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None of these: This option applies if the situation does not fit the other categories.
-
All of these: This option suggests that multiple categories could apply, but this is not the case here.
Final Answer
Toyota acquiring Honda would be an example of e. Horizontal merger, as both companies operate within the same industry (automotive manufacturers) and are at the same stage of production.
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