If a donut corporation acquires a flour company,this strategy would be called:
A) Vertical acquisition
B) Diversification
C) Conglomeration
D) Joint venture

Question

Quizplus · Accepted Answer

A vertical acquisition is when a company acquires another company in the same industry but at a different stage of the production process. Acquiring a flour company for a donut corporation would be a vertical acquisition because flour is a key ingredient in making donuts.

If a Donut Corporation Acquires a Flour Company,this Strategy Would