A Merger Between a Firm and One of Its Suppliers

question 54

Multiple Choice

A merger between a firm and one of its suppliers would be called

• A)a horizontal merger.
• B)a vertical merger.
• C)an anti-trust violation.
• D)a Cournot merger.

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Definitions:

Quarterly Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits on a quarterly basis.

Dividend Income

Income received from owning shares of a company which pays out earnings to its shareholders.

Shares

Units of ownership interest in a corporation or financial asset, providing a portion of the profits to shareholders in the form of dividends.

Annual Coupon

Annual Coupon refers to the yearly interest payment that bondholders receive from the bond's issue date until it matures.