A clothing manufacturer that acquires a woolen mill is an example of a:

Question

Quizplus · Accepted Answer

A vertical merger occurs when two companies at different stages of production or distribution in the same industry combine. In this case, a clothing manufacturer (which uses wool in its production process) acquiring a woolen mill (which produces wool) is an example of integrating different stages of production within the same industry, thus a vertical merger.

A Clothing Manufacturer That Acquires a Woolen Mill Is an Example