土豆妮

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) diversifying merger.

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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.

土豆妮

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

A) congeneric merger.

B) horizontal merger.

C) vertical merger.

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

土豆妮

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

A) horizontal merger.

B) conglomerate merger.

C) vertical merger.

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