Reading 35: Mergers and Acquisitions - LOS a ～ Q11-14

答案和详解如下：

11.If a firm combines with one of its suppliers or customers, it is called a:

A)   vertical merger.

B)   horizontal merger.

C)   congeneric merger.

D)   conglomerate merger.

The correct answer was A)

When a firm merges with a supplier or customer, it is a vertical merger.

12.A combination of two firms in the same line of business is called a:

A)   vertical merger.

B)   congeneric merger.

C)   conglomerate merger.

D)   horizontal merger.

The correct answer was D)

A combination of two firms in the same line of business is a horizontal merger.

13.Burger World has purchased a large farming company so it can control the quality of the french fries it serves in its restaurants. This merger is best described as a:

A)   horizontal merger.

B)   vertical merger.

C)   conglomerate.

D)   diversifying merger.

The correct answer was B)

In a vertical merger, the acquiring company seeks to move up or down the product supply chain. The purchase of the farming company is a move backward in the supply chain towards the raw material inputs.

14.Which of the following is NOT a commonly used merger classification describing the type of merger?

A)   Conglomerate merger.

B)   Diagonal merger.

C)   Horizontal merger.

D)   Vertical merger.

The correct answer was B)

Diagonal merger is not a commonly used merger classification. The other answers are commonly used to describe the type of merger that has occurred.