Which of the following mergers would result from the purchase of a paper mill by a textbook publishing company?
A) An interlocking merger.
B) A vertical merger.
C) A conglomerate merger.
D) A horizontal merger.

Question

Quizplus · Accepted Answer

A textbook publishing company purchasing a paper mill is an example of a vertical merger. This is because the two companies are in different stages of the production process, with the publishing company being involved in the final product (textbooks) and the paper mill being involved in the production of one of the inputs (paper).

Which of the Following Mergers Would Result from the Purchase