Asked by Alejandra Quiroz on Jul 12, 2024

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A merger between an automobile manufacturer and a maker of automobile tires is an example of a

A) conglomerate merger.
B) horizontal merger.
C) vertical merger.
D) tying contract.

Conglomerate Merger

A type of merger in which two companies in unrelated businesses combine their operations.

Horizontal Merger

A business consolidation that occurs between firms which operate in the same industry, often leading to a higher market concentration.

Vertical Merger

A merger between two companies operating at different levels within an industry's supply chain.

  • Identify distinctions among merger models and evaluate their pertinence to regulations concerning antitrust.
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Verified Answer

MS
Maninder SinghJul 18, 2024
Final Answer :
C
Explanation :
A merger between an automobile manufacturer and a maker of automobile tires is an example of a vertical merger because it involves companies at different stages of production in the same industry, creating a supply chain relationship.