A combination of companies that have a buyer-seller relationship is a:
A) conglomerate merger.
B) vertical merger.
C) horizontal merger.
D) takeover.

Question

Quizplus · Accepted Answer

A combination of companies that have a buyer-seller relationship is a vertical merger. This means the companies are operating at different levels of the production or supply chain, where one company supplies goods or services to the other. Conglomerate merger involves combining companies that operate in completely different industries, while horizontal merger is a combination of companies operating in the same industry. Takeover refers to the act of one company acquiring another.

A Combination of Companies That Have a Buyer-Seller Relationship Is