A steel maker acquired a coal mining company. Which of the following terms best describes this deal?
A) Vertical
B) Conglomerate
C) Horizontal
D) Obtuse
E) Tender offer

Question

Quizplus · Accepted Answer

A vertical acquisition occurs when a company acquires a supplier or a customer, which is in the same production value chain as the acquirer. In this case, the steel maker (the acquirer) acquired a coal mining company (the supplier), which means the acquisition is vertical.

A Steel Maker Acquired a Coal Mining Company