If you consider Amazon and Whole Foods to be firms in different types of business, you...

If you consider Amazon and Whole Foods to be firms in different types of business, you would classify the merger as a ________ merger. If you know that Amazon already delivers food, but does not have the necessary warehousing function in its chain of functions, you would classify the merger as a __________ merger. A. Conglomerate, horizontal B. Conglomerate, vertical C. Horizontal, vertical D. Vertical, conglomerate

Expert Solution

Correct Answer:

B

Explanation:

If Companies belong to different industries like Amazon and whole food, then it is a conglomerate merger.

If Amazon delivers food, but lacks warehousing function, then their merger will help Amazon get the expertise of warehousing function possessed by Whole Foods. It will complete the supply chain of Amazon with this merger. So, it makes merger to be vertical in nature.

Rahul Sunny answered 2 years ago

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