Joe's hotdog stand merges with a company that supplies the condiments to Joe's. This is an example of
A) conglomerate merger.
B) concentration ratio.
C) vertical 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 product merge, such as a hotdog stand merging with its condiment supplier.

Joe's Hotdog Stand Merges with a Company That Supplies the Condiments