Horizontal integration differs from vertical integration in that it
a. combines different businesses involved in all phases of a product’s development.
b. merges stocks from multiple businesses into a new organization.
c. consolidates many firms involved in the same business into one giant company.
d. requires investment from a number of people who share ownership in the firm.
Answer (3)
Horizontal integration, option c, involves consolidating many companies involved in the same business into one larger company. It is about merging businesses in the same industry to increase shares and reduce competition. In contrast, vertical integration is about a company taking control of different parts of a product's supply chain to increase efficiency and reduce costs. ;
The correct answer is the option C : consolidates many firms involved in the same business into one giant company. ;
The correct answer is option C: consolidates many firms involved in the same business into one giant company. Horizontal integration increases a company's capacity and market share by merging with similar businesses, unlike vertical integration which involves combining different stages in a supply chain. Both strategies are used for growth and efficiency within industries.
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