The purchase ________ best fits the definition of a vertical acquisition.
A)of a men's clothing store by a women's clothing company
B)of a vacation resort by a steel manufacturer
C)of a coal mine by an electric utility company
D)by a restaurant of its main competitor
E)of an airline by a major retail chain

Question

Quizplus · Accepted Answer

A vertical acquisition occurs when a company acquires another company that is a part of the same supply chain, but at a different level of production. In this case, the electric utility company will use the coal mine as a source of raw material for its operations, making it a vertical acquisition.

The Purchase ________ Best Fits the Definition of a Vertical