If Snapper Lawnmowers were to acquire Briggs and Stratton (gasoline-powered engines), the merger would be:
A)A conglomerate
B)A divestiture
C)Horizontal
D)Vertical

Question

Quizplus · Accepted Answer

The merger between Snapper Lawnmowers and Briggs and Stratton, both operating within the same industry, would be categorized as a vertical merger. This is because Snapper Lawnmowers produces lawnmowers, while Briggs and Stratton supplies them with gasoline-powered engines. Combining these firms would create a more integrated supply chain, allowing for greater operational efficiencies and cost savings.

If Snapper Lawnmowers Were to Acquire Briggs and Stratton (Gasoline-Powered