The merger of a jewelry company with a mining company is best described as a:
A) conglomerate.
B) vertical merger.
C) horizontal merger.

Question

Quizplus · Accepted Answer

A vertical merger occurs when two companies at different stages of production or the supply chain merge. In this case, a jewelry company (which designs and sells jewelry) merging with a mining company (which extracts the raw materials needed for jewelry) represents a vertical integration, as they are at different stages in the supply chain.

The Merger of a Jewelry Company with a Mining Company