When a firm acquires its supplier,it is engaging in:
A) a horizontal acquisition.
B) an unrelated acquisition.
C) a hostile takeover.
D) a vertical acquisition.

Question

Quizplus · Accepted Answer

When a firm acquires its supplier, it is engaging in a vertical acquisition. This type of acquisition happens when a company buys a supplier or a distributor, either upstream or downstream in the supply chain, to gain greater control over the production process, reduce costs, or improve the quality of its products or services.

When a Firm Acquires Its Supplier,it Is Engaging In