Question

Kooky Cookies Corporation purchased the Crazy Cookie Company. Although this was initially an acquisition, the merging of these two businesses was a __________ merger. Kooky Cookies went on to purchase several baking product companies. Joining forces with some of its suppliers would represent a __________ merger.

Answer 1

Answer:

The answers are Horizontal and Vertical respectively.

Explanation:

Horizontal integration refers to the expansion strategy adopted by the corporations which involves acquisition of one company by another company where both the companies are in the same business line and at same value chain supply level, whereas, Vertical integration refers to the expansion strategy adopted by the corporations where one company acquire another company who is at the different level, usually at the lower level of its value chain supply process.