A manufacturing firm purchases a retail chain that sells its products is an example of ____.

A) a horizontal merger
B) a vertical merger
C) a conglomerate merger
D) a competition reduction merger

Question

A manufacturing firm purchases a retail chain that sells its products is an example of ____.A) a horizontal mergerB) a vertical mergerC) a conglomerate mergerD) a competition reduction merger

Engely Jimenez · Accepted Answer

Final Answer : B, Explanation :  A vertical merger is when a company acquires another company that is part of its supply chain or distribution network. In this case, the manufacturing firm is purchasing a retail chain that sells its products, which would be considered a vertical merger. A horizontal merger would involve the manufacturing firm purchasing another company in the same industry or market, a conglomerate merger would involve the manufacturing firm purchasing a company in an unrelated industry, and a competition reduction merger would involve the manufacturing firm purchasing a competitor in order to reduce competition.

A manufacturing firm purchases a retail chain that sells its products is an example of ____.

A) a horizontal merger
B) a vertical merger
C) a conglomerate merger
D) a competition reduction merger

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Learning Objectives

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