Asked by Maria Scavone on May 18, 2024
Verified
A firm acquires a supplier or a customer in a vertical merger.
Vertical Merger
A business consolidation that occurs between companies operating at different levels within the same industry’s supply chain.
Supplier
An entity that provides goods or services to another organization, often as part of a supply chain.
Customer
An individual or organization that purchases goods or services from a business.
- Identify the differences between various kinds of mergers and their strategic intents.
Verified Answer
BH
Breanna HinnantMay 19, 2024
Final Answer :
True
Explanation :
A vertical merger is a merger between firms operating in different stages of the supply chain, such as a firm acquiring a supplier or a customer. Therefore, the statement is true.
Learning Objectives
- Identify the differences between various kinds of mergers and their strategic intents.