A local lumber company's purchase of a window and door manufacturer is an example of which of the following types of merger?
A) a combination
B) a conglomerate
C) a horizontal merger
D) a vertical merger

Question

Quizplus · Accepted Answer

A vertical merger is when a company acquires a supplier or distributor in the same industry to streamline its supply chain. In this case, the lumber company is acquiring a window and door manufacturer to integrate it into their operations and have control over the production of the materials they need for their business.

A Local Lumber Company's Purchase of a Window and Door