Greater control over the acquisition of raw materials or the
distribution of finished goods is an
economic benefit of a ________.
17)
A) congeneric merger B) conglomerate merger
C) horizontal merger D) vertical merger
This is a benefit of a vertical merger. In this kind of merger one firms merges with another firm which is up or down in the hierarchy. For example if petroleum seller purchases crude oil refinery so now he has a greater control over the raw material that is crude oil.
Similarly if a bread maker merges with a bakery so he is able to sell his own product on his own terms with greater profit share.
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Greater control over the acquisition of raw materials or the distribution of finished goods is an...
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