Question

Kooky Cookies Corporation purchased the Crazy Cookie Company. Although this was initially an acquisition, the merging of these two businesses was a ________ merger. Kooky Cookies went on to purchase several baking product companies. Joining forces with some of its suppliers would represent a ________ merger.

Answer 1

Answer:

horizontal; vertical

Explanation:

A merger is called horizontal if the company takes a competitor. This will result in the company taking the current market share of the competitor and widen its operational range, thus its called horizontal.  

A merger will be called vertical if the company joins with the supplier or retailer. Its called vertical since the two businesses located at the different production stages (either on top or bottom). This will help them become more efficient in making or delivering their product, help them to decrease the cost of production.