Hair's to You,a nationwide network of hair styling salons,recently approached Flair All,Inc.,a maker of hair care products,about the potential for a merger.Many of Flair All's products are used by professional hair stylists,and Hair's to You believes that such a merger would ensure a supply of good quality products for use in its salons.If the firms do merge,it would be an example of a:

Question

Quizplus · Accepted Answer

A vertical merger is when companies in the same industry, but in different stages of production, merge with each other. In this case, Flair All, Inc. is a maker of hair care products and Hair's to You is a salon network. Therefore, they are in different stages of the hair industry production chain. A vertical merger would ensure a smooth supply chain for Hair's to You and secure distribution channels for Flair All, Inc.

Hair's to You,a Nationwide Network of Hair Styling Salons,recently Approached