Which of the following describes backward vertical merger?
A) a vertical merger between two or more companies that compete in the same business and geographical market
B) a vertical merger between two companies in similar fields whose sales do not overlap
C) a vertical merger in which a supplier acquires a customer
D) a vertical merger in which a customer acquires a supplier

Question

Quizplus · Accepted Answer

Backward vertical merger is a type of vertical merger in which a customer acquires a supplier. This helps the customer to have greater control over the supply chain, ensure better quality of inputs and have control over supply disruptions.

Which of the Following Describes Backward Vertical Merger