Which of the Following Is an Example of a Merger

question 63

Multiple Choice

Which of the following is an example of a merger undertaken in order to achieve gains from vertical integration?

• A)A car manufacturer acquires a car parts supplier.
• B)A breakfast cereal producer acquires another breakfast cereal producer and the combined firm is able to negotiate a reduced cost for the grain used in its cereal.
• C)A telecommunications firm acquires another telecommunications firm and the combined firm serves a large percentage of the market.
• D)An accounting firm acquires another accounting firm and the combined firm is able to eliminate duplication among administrative positions.
• E)A video game development firm acquires another video game development firm that specializes in designing games for a new gaming system.

---

Definitions:

B2B Markets

Marketplaces where transactions are conducted between businesses rather than between businesses and consumers.

Straight Rebuy

Describes a routine repurchase of the same goods or services without modification, often made by businesses from previous suppliers.

Buying Process

The series of steps a consumer goes through, from recognizing a need or desire to the final purchase decision, including information search, evaluation of options, and post-purchase evaluation.

Modified Rebuy

A buying situation where an organization makes changes to its previous purchase orders, involving modifications in product specifications, prices, or suppliers.