Asked by Charlesiana Roberts on Jul 19, 2024

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If a firm is afraid of being prevented from using a certain supplier due to a proposed merger, what type of merger is the proposed merger likely to be?

A) A consolidation
B) A horizontal merger
C) A conglomerate merger
D) A vertical merger

Horizontal Merger

A business consolidation that occurs between firms who operate in the same industry, often aimed at creating a more competitive entity with higher market share.

Conglomerate Merger

A merger between companies that operate in entirely different industries.

Supplier

An entity that provides goods or services to another organization involved in a supply chain.

  • Gain insight into the logic underpinning mergers, acquisitions, and antitrust regulations.
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Verified Answer

JT
JADIAMOND THOMASJul 21, 2024
Final Answer :
D
Explanation :
A vertical merger is a merger between firms that operate at different stages of the production process for a specific product or service. If a firm is concerned that a proposed merger will prevent them from using a certain supplier, it is likely that the merger involves firms that are vertically integrated with each other and may lead to the supplier being acquired by the merged entity.