A Vertical Merger Is One in Which the Buyer Expands

question 40

True/False

A vertical merger is one in which the buyer expands forward in the direction of the ultimate consumer or backward toward the source of raw material.

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Definitions:

Corporate Dissolution

The formal process of dissolving a corporation's legal existence.

Voluntary Action

An act undertaken by choice or free will, often implying a decision made without external coercion.

Board of Directors

A group of individuals elected by shareholders to oversee and make major decisions for a corporation.

Asset Sale

The transaction in which the assets of a company, instead of its stock, are sold to a buyer, transferring ownership of the assets.