Which of the following combinations would constitute a vertical merger? A) Yahoo! and Google Internet search engine companies

B) Dell and Apple computer companies

C) General Motors and Ford Motor Company

D) General Motors and Bridgestone Tire Company

D

Explanation:

A vertical merger is when two or more companies merge and are involved at different stages in the supply chain process for a common good or service. The merger is purposed to increase synchronism, gain more control of the supply chain process, and increase business. Also, it often results in reduced costs and increased productivity and efficiency.

A good example of a vertical merger is a auto manufacturer purchasing a tire company. A vertical merger of this sort reduces the cost of tires for the automaker and creates the possibility for expansion of its business by allowing it to supply tires to competing automakers.