Greater control over the acquisition of raw materials or the distribution of finished goods is an economic benefit of a ________.
A) congeneric merger
B) conglomerate merger
C) horizontal merger
D) vertical merger

Question

Quizplus · Accepted Answer

A vertical merger involves the combination of companies involved in different stages of the production or distribution process, such as a company that produces raw materials merging with a company that manufactures finished goods. This type of merger can give the resulting company greater control over the entire production or distribution process, leading to economic benefits such as increased efficiency and reduced costs.

Greater Control Over the Acquisition of Raw Materials or the Distribution