Suppose Nabisco merges with both a wheat firm and milling firm. This is an example of a
A) vertical merger.
B) horizontal merger.
C) parallel merger.
D) diagonal merger.

Question

Quizplus · Accepted Answer

A vertical merger is a merger between companies that operate in different stages of the production process. In this case, Nabisco (a food company) merging with a wheat firm (which produces one of the ingredients used in Nabisco products) and a milling firm (which processes one of the ingredients used in Nabisco products) would be an example of a vertical merger.

Suppose Nabisco Merges with Both a Wheat Firm and Milling