A merger between the Ford Motor Company and General Motors would be an example of a

A) conglomerate merger.
B) vertical merger.
C) horizontal merger.
D) trust.


C

Economics

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An U.S. firm buys a new industrial sewing machine from a company located in France. Which of the following is TRUE?

I. U.S. net exports decrease. II. U.S. investment increases. A) only I B) only II C) both I and II D) neither I nor II

Economics

If the U.S. experiences a current account deficit, then

A. the U.S. must also be running a capital account deficit. B. the U.S. must be running a capital account surplus. C. the U.S. may either experience a capital account surplus or deficit. D. None of these statements are true.

Economics

If financial intermediaries charge a higher rate of interest to lenders than they pay to borrowers, then

a. investing with borrowed funds involves a higher opportunity cost than investing with savings b. investing with saving involves a higher opportunity cost than investing with borrowed funds c. a firm is charged less interest to borrow than it can earn on savings d. the opportunity cost of investing with borrowed funds equals the opportunity cost of investing with savings e. a firm does not consider the market rate of interest when it makes investment decisions

Economics

Externalities are created when parties not involved in an economic transaction are affected by it.

Answer the following statement true (T) or false (F)

Economics