GloboTech, Inc., a large manufacturer of laptops, is considering a merger with ChipComm, a leading producer of microprocessors and other computer chips. GloboTech believes such a merger would give it a guaranteed source of needed components, and enable it to have better control over quality. If this merger occurs, it would be an example of a horizontal merger.

Question

Business

Stanley Holloway

13 April, 21:24

GloboTech, Inc., a large manufacturer of laptops, is considering a merger with ChipComm, a leading producer of microprocessors and other computer chips. GloboTech believes such a merger would give it a guaranteed source of needed components, and enable it to have better control over quality. If this merger occurs, it would be an example of a horizontal merger.

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Answers (1)

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Andres Middleton · Answer 1

The correct answer to the following question will be "False".

Explanation:

Horizontal fusion happens when multiple companies will offer different goods or services to certain users, or it could be the fusion of two organizations competition from a rival. In this GloboTech seems to be a notebook maker as well as Chipcomm is a developer of microcontrollers and certain other electronic components. That would have been a convocation ceremony as when the groups are considered in manufacturing the computer at different manufacturing phases.

So that the above is the right answer.