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A horizontal merger combines firms that:
AOperate at different stages of the same supply chain
BOperate in different unrelated industries
CHave no business relationship before the merger
DOperate in the same industry and similar products
Answer & Solution
Correct answer: D. Operate in the same industry and similar products
1. Identify what the question asks: this concept maps to horizontalmerger (§3).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (D).
_Source: ICAI BoS CA Final Paper 2, Ch 14 "Mergers Acquisitions and Corporate Restructuring"_
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