A merger between an automobile manufacturer and a maker of automobile tires is an example of a
A) conglomerate merger.
B) horizontal merger.
C) vertical merger.
D) tying contract.

Question

Quizplus · Accepted Answer

A merger between an automobile manufacturer and a maker of automobile tires is an example of a vertical merger, as they are two companies operating at different stages in the production process of the same product. The automobile manufacturer is at the production stage, while the tire maker is at the raw material stage.

A Merger Between an Automobile Manufacturer and a Maker of Automobile