Question

Horizontal integration occurs in business when a company___________.
(A)acquires ownership or control over the companies in the same business
(B)controls all accepts of the production and distribution of its product
(C)create locally owned Frenchies
(D)changes its ownership from the single proprietor to board of directors
(E)uses scientific management techniques to increase efficiency.

Answer 1

Hint:Horizontal integration increases market power over distributors and suppliers; its strategy is competitive and can create economies of scale. It helps businesses to expand their market and or enter new markets, horizontal integration is considered a successful business strategy as it helps in the growth of the business itself of the same type.

Complete answer:
Horizontal integration when two forms combined their products and the production level is the same level it is a process in which companies increase their production by combining it with each other we can also that mixing two companies at the same level of value chain means whose values are equal but the basic aspect of this is the business and product should be same, for example, if one person is having a business if restaurant so the business they want to combine is of the only restaurant, it is an internal expansion of the business. By merging companies that capture the vast majority of marketing, companies integrate multiple stages of production of a small number of production Horizontal integration is related with horizontal alliance also known as horizontal collaboration.it may provide a strengthened presentation in the reference market. Horizontal integration can be followed in every type of business as it is related to expansion and the best way to do it in its own type.

Hence, the correct answer is option (A).

Note:The basic aspect of every business is its expansion and to earn profits horizontal integration helps in both as merging two companies together of same products gives profit to business and helps in their expansion. There are many disadvantages of horizontal integration such as robbery media critics etc by making inspection as per the time we can be cured of these disadvantages.