A merger of firms with a supplier is a:
A) vertical merger.
B) conglomerate merger.
C) monopoly merger.
D) horizontal merger.

Question

Quizplus · Accepted Answer

A merger of firms with a supplier is termed as a vertical merger. In this type of merger, two companies in the same supply chain merge, where one company is a supplier to the other company. The main objective of such a merger is to attain greater economies of scale and reduce costs. Hence, option A is the correct answer. Option B, C, and D are incorrect as they do not accurately describe a merger of firms with a supplier.

A Merger of Firms with a Supplier Is A