If Tyson Corporation, a firm that raises and processes chickens, combined with Kentucky Fried Chicken, the resulting merger would be an example of a
A) horizontal merger.
B) geographic merger.
C) vertical merger.
D) conglomerate merger.

Question

Quizplus · Accepted Answer

A vertical merger occurs when companies in different stages of the same industry join together. In this case, Tyson Corporation and Kentucky Fried Chicken are in different stages of the chicken industry, with Tyson Corporation raising and processing chickens and Kentucky Fried Chicken using those chickens to prepare their food products. Therefore, this merger would be considered a vertical merger.

If Tyson Corporation, a Firm That Raises and Processes Chickens