Firms that want to provide tighter integration of production and increased control over the supply of crucial inputs would most likely consider a _____ merger.
A) hostile
B) conglomerate
C) vertical
D) horizontal

Question

Quizplus · Accepted Answer

A vertical merger involves the combination of two firms that are involved in different stages of the production process. Therefore, a vertical merger would allow for tighter integration of production and increased control over the supply of crucial inputs, making it the most likely choice for firms that want to achieve these benefits. A hostile merger involves a takeover attempt that is opposed by the target company, a conglomerate merger involves the combination of unrelated businesses, and a horizontal merger involves the combination of two firms that operate in the same industry and at the same stage of the production process.

Firms That Want to Provide Tighter Integration of Production and Increased