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Straight Cut beauty salon merges with Clean-Cut beauty salon. This is an example of

A) vertical merger.
B) horizontal merger.
C) conglomerate merger.
D) concentration ratio.

1 Answer

5 votes

Answer:

The answer is B. horizontal merger

Step-by-step explanation:

Horizontal merger is a type of merger found between two competing firms operating in the same industry. Straight Cut beauty salon and Clean-Cut beauty salon are in the same industry performing the same or similar function.

Horizontal merger are done to increase the market share or enjoys economies of scale.

Straight Cut beauty salon and Clean-Cut beauty salon after the merger can introduce a wide range of services within the beauty salon

User Leon Williams
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