Question

1. When a company like Dell merges with a company like Intel this is an example of
   1. A vertical merger                                       c. contractual hiring
   2. Purchasing on ye spot market                d. none of these

Answer 1

Option (a) A vertical merger.

If company like dell and intel merges it will be a vertical merger case or situation. Because the vertical merger is when two or more companies who are in different stages of a supply chain in the production of common products or services.

A vertical merger is the merger of a company and its supplier. When companies produce different services and products along a value chain and their merger takes place, it is referred to as a vertical merger.

Hence, Dell and intel are producing almost similarly finished products or the raw product which other company needs. So it is the clear example of vertical merger.

Thank you.

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