What type of merger would firms that want to improve the integration of production activities or increase their control over the supply of inputs be most likely to consider?
A) a conglomerate merger
B) a vertical merger
C) a generic merger
D) a horizontal merger

Question

Quizplus · Accepted Answer

Firms looking to improve the integration of production activities or increase their control over the supply of inputs would consider a vertical merger. In a vertical merger, two firms that operate at different stages of the supply chain come together to form a single entity. This type of merger allows firms to reduce their transaction costs and increase their bargaining power with suppliers and customers.

What Type of Merger Would Firms That Want to Improve