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Question
Which statements about mergers are true?
(A) Horizontal mergers combine two companies in the same industry, which are commonly direct competitors.
(B) Vertical mergers combine two companies at different stages of the supply chain between raw materials to delivery to consumers.
(C) A merger moving away from the consumer is a forward vertical merger, and moving closer to the customer is a backward vertical merger.
(D) Conglomerate mergers combine a company with a firm in an unrelated industry.
(E) AT&T combined with T-Mobile to form the largest communications company in the U.S.
Answer
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