Which of the Following Describes a Vertical Merger

question 98

Multiple Choice

Which of the following describes a vertical merger?

• A) a merger between firms in totally unrelated businesses
• B) a merger that integrates the operations of a supplier and a customer
• C) a merger between two companies in similar fields whose sales do not overlap
• D) a merger between two or more companies that compete in the same business and geographical market

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Definitions:

Anchoring And Adjustment

A cognitive bias where an individual depends too heavily on an initial piece of information (anchor) when making decisions and makes insufficient adjustments based on subsequent information.

Availability

The degree to which a system, service, or product is operational and accessible when required for use.

Projection

A psychological defense mechanism where an individual ascribes their own unacceptable desires, impulses, or thoughts onto another person or group.

Representativeness

The degree to which a sample or instance accurately reflects the characteristics of a larger group.