Manny Inc. recently completed the purchase of its primary supplier. Manny intends to begin expanding the market to which the suppliers' products are sold. This purchase is a(an)
A) merger.
B) unrelated acquisition.
C) horizontal acquisition.
D) vertical acquisition.

Question

Quizplus · Accepted Answer

A vertical acquisition is when a company acquires a supplier or a distributor, allowing them to integrate the supply chain and gain more control over their production and distribution processes. This acquisition by Manny Inc. of its primary supplier fits the definition of a vertical acquisition.

Manny Inc Recently Completed the Purchase of Its Primary Supplier