When a building supply store acquires a lumber mill they are doing a ______ acquisition.
A) Horizontal.
B) Longitudinal.
C) Conglomerate.
D) Vertical.
E) Complementary resources.

Question

Quizplus · Accepted Answer

When a building supply store acquires a lumber mill, it is engaging in a vertical acquisition because it is acquiring a company that operates earlier in the supply chain. This type of acquisition aims to control more stages of the production or supply process.

When a Building Supply Store Acquires a Lumber Mill They