A merger where a chain of coffeehouse stores acquires a coffee plantation is an example of a ________.
A) backward vertical merger
B) forward vertical merger
C) market extension merger
D) conglomerate merger

Question

Quizplus · Accepted Answer

This is an example of a backward vertical merger because the coffeehouse chain, which operates closer to the final consumer in the supply chain, is acquiring a supplier (the coffee plantation), thereby integrating backwards towards the source of its raw materials.

A Merger Where a Chain of Coffeehouse Stores Acquires a Coffee