A Merger Between Two Firms That Have a Supplier-Purchaser Relationship

question 43

Multiple Choice

A merger between two firms that have a supplier-purchaser relationship is:

• A) horizontal.
• B) vertical.
• C) conglomerate.
• D) illegal.
• E) inefficient.

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Definitions:

Liquor Licenses

Permits issued by government agencies that allow individuals or entities to sell alcoholic beverages legally.

New Market Entrants

Businesses or individuals that enter a market for the first time, introducing competition and innovation.

Long-Run Profitability

The ability of a firm to generate a consistent profit over an extended period of time.

Brand Names

Names given to a product or service by a company to distinguish it from competitors, often associated with a perceived quality or reputation.