Which of the following combinations would constitute a vertical merger?
A) General Motors and Bridgestone Tire Company
B) General Motors and Ford Motor Company
C) Philip Morris and RJ Reynolds
D) Philip Morris and Barnes & Nobles Booksellers

Question

Quizplus · Accepted Answer

A vertical merger involves two companies in the same industry but at different stages of the production process. General Motors and Bridgestone Tire Company are both in the automotive industry but at different stages (car manufacturing and tire manufacturing), therefore, their combination would constitute a vertical merger. The other options involve companies in different industries and therefore would not constitute a vertical merger.

Which of the Following Combinations Would Constitute a Vertical Merger