The acquisition of a ﬁrm in a different production process stage than the bidder is called a:
A) Conglomerate acquisition.
B) Forward acquisition.
C) Backward acquisition.
D) Horizontal acquisition.
E) Vertical acquisition.

Question

Quizplus · Accepted Answer

A vertical acquisition is the acquisition of a firm in a different production process stage than the bidder. The other answer choices are different types of acquisitions, but do not specifically refer to a situation where the bidder targets a firm in a different stage of production.

The Acquisition of a ﬁRm in a Different Production Process