Asked by Alejandra Quiroz on Jul 12, 2024
Verified
A merger between an automobile manufacturer and a maker of automobile tires is an example of a
A) conglomerate merger.
B) horizontal merger.
C) vertical merger.
D) tying contract.
Conglomerate Merger
A type of merger in which two companies in unrelated businesses combine their operations.
Horizontal Merger
A business consolidation that occurs between firms which operate in the same industry, often leading to a higher market concentration.
Vertical Merger
A merger between two companies operating at different levels within an industry's supply chain.
- Identify distinctions among merger models and evaluate their pertinence to regulations concerning antitrust.
Verified Answer
MS
Maninder SinghJul 18, 2024
Final Answer :
C
Explanation :
A merger between an automobile manufacturer and a maker of automobile tires is an example of a vertical merger because it involves companies at different stages of production in the same industry, creating a supply chain relationship.
Learning Objectives
- Identify distinctions among merger models and evaluate their pertinence to regulations concerning antitrust.