A vertical merger involves a combining of one or more firms
A) as the result of one firm purchasing the assets of the other.
B) that are operating in entirely different industries.
C) operating at different stages of the production process in a particular industry.
D) operating at the same stage of the production process.

Question

Quizplus · Accepted Answer

A vertical merger involves the combination of firms that are operating at different stages of the production process in a particular industry. This type of merger occurs when a company acquires its supplier or distributor, or merges with a company that operates in a different stage of the production process. This type of merger can result in greater efficiency, lower costs, and greater control over the quality of the final product.

A Vertical Merger Involves a Combining of One or More