When a tobacco firm merges with a steel company, it would be called
A) a horizontal merger.
B) a vertical merger.
C) a conglomerate merger.
D) a consolidation.

Question

Quizplus · Accepted Answer

A merger between a tobacco firm and a steel company would be considered a conglomerate merger because the two companies are in completely different industries and do not have any overlap in their products or services. A horizontal merger is when two companies in the same industry merge, while a vertical merger is when a company merges with one of its suppliers or customers. Consolidation is a general term that can refer to any type of merger or acquisition.

When a Tobacco Firm Merges with a Steel Company, It