Answer (B) is correct . A horizontal merger occurs when two firms in the same industry combine. General Motors and Ford are both in the automobile industry. A merger of these two companies would be a horizontal merger.
Answer (A) is incorrect because A diversifying merger brings together companies in different industries.
Answer (C) is incorrect because A conglomerate merger is a combination of two firms in unrelated industries.
Answer (D) is incorrect because A vertical merger is a combination of a firm with one of its suppliers or customers.
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