Greater control over the acquisition of raw materials or the distribution of finished goods is an economic benefit of
A) vertical merger
B) conglomerate merger
C) congeneric merger
D) horizontal merger

Question

Quizplus · Accepted Answer

A vertical merger involves the combination of companies that operate at different stages of the production process, such as a supplier and a manufacturer or a manufacturer and a distributor. This type of merger allows for greater control over the acquisition of raw materials and the distribution of finished goods. By bringing these stages under one company, it can streamline operations, reduce costs, and improve efficiency, ultimately leading to economic benefits.

Greater Control Over the Acquisition of Raw Materials or the Distribution