Bottom's Up pants manufacturer decides to purchase the local outlet mall's only pants store to sell their pants. This is known as a ________ merger.

Question

Quizplus · Accepted Answer

A vertical merger occurs when a company acquires another company that operates at a different level within the same industry's supply chain. In this case, Bottom's Up, a pants manufacturer, purchasing a retail store to sell its pants, represents a vertical integration as it combines two different stages of production and distribution within the same industry.

Bottom's Up Pants Manufacturer Decides to Purchase the Local Outlet