Kooky Cookies Corporation purchased the Crazy Cookie Company. Although this was initially an acquisition, the merging of these two businesses was a ________ merger. Kooky Cookies went on to purchase several baking product companies. Joining forces with some of its suppliers would represent a ________ merger.

Question

Quizplus · Accepted Answer

A merger of two companies which compete in the same industry and for the same market is a horizontal merger. A merger between two firms at different stages of related businesses is a vertical merger.

Kooky Cookies Corporation Purchased the Crazy Cookie Company