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A carmaker buys the firm that supplies its tyres. That is a:
ALateral merger
BNeutral merger
CVertical merger
DHorizontal merger
Answer & Solution
Correct answer: C. Vertical merger
1. The firms sit at different stages.
2. The aim is control over a stage.
3. It is a vertical merger.
_Source: OpenStax Introduction to Business, Chapter 4, Forms of Business Ownership._
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