Question

MULTIPLE CHOICE
What's the most common reason for a vertical merger?
(A) To create subsidiaries of the company in order to specialize in different product areas.
(B) To reduce the number of directly competing businesses that are selling the same thing.
(C) To reduce the cost of doing business by combining with a supplier.
(D) To foster competition among businesses and give customers more buying options.

Answer 1

Answer:

D

Explanation:

To gain more control of the supply chain process, and increase business

Answer 2

The most common reason for a vertical merger is to foster competition among businesses and give customers more buying options. So, D is the correct option.

What do you mean by a vertical merger?

A vertical merger refers to the combination of two companies that are primarily involved in the production of the same goods or services but at different stages of production.

The most common reason for a vertical merger is to foster competition among businesses and give customers more buying options.

Therefore, D is the correct option.

Learn more about the Vertical mergers here:

https://brainly.com/question/16557059

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