Manny Inc.recently completed the purchase of its primary supplier.Manny intends to begin expanding the market to which the supplier's products are sold.This purchase is a(n):
A) merger.
B) unrelated acquisition.
C) horizontal acquisition.
D) vertical acquisition.

Question

Quizplus · Accepted Answer

A vertical acquisition occurs when a company purchases another company that operates in the production process of the same industry, such as a supplier.

Manny IncRecently Completed the Purchase of Its Primary Supplier