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In the context of corporate restructuring, what is a common objective of a vertical merger?

a) Expanding into new markets
b) Gaining control over suppliers or distributors
c) Diversifying into unrelated industries
d) Reducing competition in the same industry

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Final answer:

A vertical merger's common objective is to gain control over suppliers or distributors, which helps streamline the supply chain, reduce costs, and enhance efficiency and market power.

Step-by-step explanation:

In the context of corporate restructuring, a common objective of a vertical merger is b) Gaining control over suppliers or distributors.

A vertical merger involves a company acquiring or merging with firms that operate at different stages of the production process, often from the creation to the delivery of a final product. This type of merger allows a company to control or streamline its supply chain, which can lead to greater efficiency, reduced costs, and increased power in the market.

Such control is beneficial for protecting against the loss of key suppliers or distributors, ensuring product supply continuity, and potentially enhancing competitive advantage by consolidating operations and reducing dependence on external entities.

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