If an automobile manufacturer and a steelworks producer decided to merge, it would be an example of a:
A)Horizontal merger
B)Vertical merger
C)Conglomerate merger
D)None of the above

Question

Quizplus · Accepted Answer

A merger between an automobile manufacturer and a steelworks producer would be a vertical merger because the two companies are in different stages of the production process but are still in the same industry. The automobile manufacturer would be considered a downstream company while the steelworks producer would be considered an upstream company in the supply chain.

If an Automobile Manufacturer and a Steelworks Producer Decided to Merge