A local lumber company's purchase of a window and door manufacturer is an example of which of the following types of merger?
A) combination
B) conglomerate
C) horizontal merger
D) vertical merger

Question

Quizplus · Accepted Answer

The purchase of a window and door manufacturer by a lumber company involves two businesses in a vertical relationship, where the lumber company is the supplier of raw materials and the window and door manufacturer is the customer. Therefore, this is a vertical merger.

A Local Lumber Company's Purchase of a Window and Door