Vertical Mergers

question 37

Multiple Choice

Vertical mergers:

• A) occur between firms that have a competitor relationship.
• B) occur between firms that have buyer and seller relationships.
• C) are not covered by the Clayton Act.
• D) are always protected by the federal government.

---

Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained for reinvestment in the business or to pay debt, rather than distributed to shareholders.

Payment

The act of giving or transferring money or monetary value in exchange for goods, services, or to fulfill a legal obligation.

Shares

Units of ownership interest in a corporation or financial asset, providing an entitlement to a portion of the profit.

Preemptive Rights

Rights that allow existing shareholders in a corporation the first chance to buy new shares before the public, to maintain their proportionate ownership.