Final answer:
An amalgamation refers to the process where two or more firms join to create one company, with a horizontal merger being one such type that leads to a single entity in the same industry sector.
Step-by-step explanation:
During a(n) amalgamation, two or more firms combine to form one company. A horizontal merger is when companies that produce similar products join forces. This type of merger helps in expanding business size, becoming more efficient, consolidating product lines, eliminating competition or even changing the corporate identity. In contrast, a vertical merger involves companies at different stages of production combining to streamline their supply chain and manufacturing processes. Finally, a conglomerate merger describes when a single firm owns multiple businesses with diverse and unrelated products, which can help in risk diversification. Regardless of the type, mergers and acquisitions result in two formerly separate entities operating under a common ownership.