The category of business combination where the firms have a supplier-customer relationship is known as a:
A)vertical merger.
B)horizontal merger.
C)conglomerate merger.
D)none of the above

Question

Quizplus · Accepted Answer

A vertical merger involves two firms that have a supplier-customer relationship, meaning one company provides goods or services to the other. This type of merger can create efficiencies and cost savings by eliminating intermediaries in the supply chain. Horizontal mergers involve firms in the same industry, and conglomerate mergers involve firms in unrelated industries.

The Category of Business Combination Where the Firms Have a Supplier-Customer