If a retail food chain merged with a meat packing company, this would be an example of a
A) horizontal merger.
B) conglomerate merger.
C) vertical merger.
D) diagonal merger.

Question

Quizplus · Accepted Answer

A vertical merger involves the combination of companies that are involved in different stages of a supply chain or production process. In this case, the retail food chain and the meat packing company are involved in different stages of the production and distribution of food products, making it a vertical merger. A horizontal merger involves the combination of companies that operate in the same industry or market, while a conglomerate merger involves the combination of companies in unrelated industries. A diagonal merger is not a commonly recognized type of merger.

If a Retail Food Chain Merged with a Meat Packing