Which term describes the practice of a company gaining control of an entire market by purchasing competing firms?

Which term describes the practice of a company gaining control of an entire market by purchasing competing firms?

• A. Horizontal Integration
• B. Philanthropy
• C. Labor Unions
• D. Dawes Act

Answer: (A)

Horizontal integration is the practice of a company gaining control of an entire market by purchasing competing firms. By buying rivals at the same stage of production, a firm can increase its market share, reduce competition, and influence prices. A classic example is the late 19th-century oil industry, where rivals were absorbed to dominate oil production. The other terms refer to different ideas: philanthropy means charitable giving, labor unions are organizations of workers seeking better conditions, and the Dawes Act dealt with Native American land allotment. So, the term described is horizontal integration.

Horizontal integration is the practice of a company gaining control of an entire market by purchasing competing firms. By buying rivals at the same stage of production, a firm can increase its market share, reduce competition, and influence prices. A classic example is the late 19th-century oil industry, where rivals were absorbed to dominate oil production. The other terms refer to different ideas: philanthropy means charitable giving, labor unions are organizations of workers seeking better conditions, and the Dawes Act dealt with Native American land allotment. So, the term described is horizontal integration.