Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Opportunity

Question:

A merger where two companies join, together that they may not compete with each other but exist in the same supply chain like an automobile company joins with one of its parts supplier. The above explanation refers to:

Options:

Horizontal Merger

Vertical Merger

Product Extension Merger

Market Extension Merger

Correct Answer:

Vertical Merger

Explanation:

The correct answer is option (2) – Vertical Merger