If an electronics manufacturer were to acquire a chain of retail electronic stores to sell its products, this would be an example of a ________ merger.
A) vertical
B) horizontal
C) market extension
D) product extension

Question

Quizplus · Accepted Answer

A vertical merger occurs when a company acquires a distributor or retailer of its product or acquires a supplier of its raw materials. In this scenario, the electronics manufacturer is acquiring a chain of retail electronic stores, which makes it a vertical merger.

If an Electronics Manufacturer Were to Acquire a Chain of Retail