If a firm is afraid of being prevented from using a certain supplier due to a proposed merger, what type of merger is the proposed merger likely to be?
A)A consolidation
B)A horizontal merger
C)A conglomerate merger
D)A vertical merger

Question

Quizplus · Accepted Answer

A vertical merger is a merger between firms that operate at different stages of the production process for a specific product or service. If a firm is concerned that a proposed merger will prevent them from using a certain supplier, it is likely that the merger involves firms that are vertically integrated with each other and may lead to the supplier being acquired by the merged entity.

If a Firm Is Afraid of Being Prevented from Using