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Horizontal integration of firms may be adopted with the following motif:
Question

Horizontal integration of firms may be adopted with the following motif:

A.

More profits by taking up additional business

B.

Risk reduction through improved market co-ordination

C.

Specializing in the trade

D.

Lowering costs through achieving operational efficiency

Correct option is D


"Reducing costs through achieving operational efficiency - Horizontal integration occurs when a company acquires or merges with another firm operating at the same level within an industry. This strategy can lead to lower costs due to economies of scale and more efficient operations."

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