Suppose that Exxon-Mobil acquired Schlumberger, an exploration/drilling company. Ignoring potential antitrust problems, this merger would be classified as a:
A) monopolistic merger.
B) vertical merger.
C) conglomerate merger.
D) horizontal merger.

Question

Quizplus · Accepted Answer

A vertical merger occurs when two companies that operate at different stages of the production process for a specific finished product combine, such as an oil company acquiring a drilling company.

Suppose That Exxon-Mobil Acquired Schlumberger, an Exploration/drilling Company