Question $1$

The merger of two companies in the same industry that make products required at different stages of

the production cycle is called:

economies of scale

horizontal integration

vertical integration

economies of scope

Question $2$

From the bidder's perspective, the takeover is a

only if the premium it pays

the

synergies created.

positive$-$NPV project; exceeds

positive$-$NPV project; does not exceed

zero$-$NPV project; does not exceed

zero$-$NPV project; exceeds