This type of acquisition involves a company buying another business along its supply chain, such as a supplier or distributor with which it formerly worked.a.Vertical acquisitionb.Conglomerative acquisitionc.Horizontal acquisitiond.Diagonal acquisition
Question
This type of acquisition involves a company buying another business along its supply chain, such as a supplier or distributor with which it formerly worked.a.Vertical acquisitionb.Conglomerative acquisitionc.Horizontal acquisitiond.Diagonal acquisition
Solution
The correct answer is a. Vertical acquisition. This type of acquisition occurs when a company acquires another company in its supply chain. This could be a supplier, distributor, or retailer that the company previously worked with. The main goal of a vertical acquisition is to increase efficiencies and cut costs by controlling more aspects of the supply chain.
Similar Questions
Vertical acquisition is when a firm's long-term strategy is based on acquiring one or more similar firms that operate in the same stage of the production-marketing chain.Select one:TrueFalse
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