Combining two or more firms in different stages of production or marketing into one firm is known as:Question 50Select one:a.None of theseb.Conglomerate Mergerc.Vertical Mergerd.All of thesee.Horizontal Merger
Question
Combining two or more firms in different stages of production or marketing into one firm is known as:Question 50Select one:a.None of theseb.Conglomerate Mergerc.Vertical Mergerd.All of thesee.Horizontal Merger
Solution
The answer is c. Vertical Merger. This type of merger occurs when two or more firms in different stages of production or marketing combine into one firm. For example, a car manufacturer merging with a tire company.
Similar Questions
The merging of two or more firms that operate in unrelated industries is a:Question 18Select one:a.None of theseb.Conglomerate Mergerc.Horizontal Mergerd.All of thesee.Vertical Merger
A Horizontal Merger is:Question 24Select one:a.All of theseb.Merging of two or more firms operating in the same industryc.Merging two or more firms in different stages of production or marketingd.None of thesee.Merging of two or more firms that operate in unrelated industries
A characteristic of a horizontal merger is that Blank______.Multiple choice question.it is the combination of two or more firms in successive stages of productionit is a conglomerate merger involving the consolidation of two essentially unrelated firmsit is motivated by economies of scale in marketing, production, or salesit typically stabilizes supply and production and offers more control of these critical areas
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An accurate statement about a vertical merger is that Blank______.Multiple choice question.it is a combination of two firms producing the same products but selling them in different geographic marketsit is the combination of two firms that produce closely related products in the same geographic areait tends to stabilize supply and production and gives firms greater control over these aspectsit is always motivated by economies of scale in marketing, production, or sales
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