Question

23) A merger between a textile mill and a clothing manufacturing company would be considered a

a. horizontal merger
b. vertical merger
c. conglomerate merger
d. diagonal merger

Answer 1

The correct answer is letter B. Vertical Merger. A merger between a textile mill and a clothing manufacturing company would be considered a vertical merger. A vertical merger is a merger between companies, 2 companies that produce various services and goods for a specified finish product.