A(n) _____ merger is the combination of firms at different stages in the production of a good or service, creating a "buyerseller" relationship.
A) upward
B) conglomerate
C) vertical
D) horizontal

Question

A(n) _____ merger is the combination of firms at different stages in the production of a good or service, creating a "buyer­seller" relationship.
A) upward
B) conglomerate
C) vertical
D) horizontal

Quizplus · Accepted Answer

A vertical merger involves the combination of firms at different stages in the production process, where one firm supplies inputs for the other. This creates a "buyer-seller" relationship, where the merged entity can control more of the supply chain and potentially reduce costs. An upward merger refers to a merger between a smaller and larger firm in the same industry, while a conglomerate merger involves the combination of unrelated firms. A horizontal merger involves the combination of firms in the same industry and at the same stage of production.

A(n) _____ Merger Is the Combination of Firms at Different