Question 1 A merger of a firm and its supplier is called a __________ merger. A. vertical B. horizontal C. conglomerate D. direct Question 2 A horizontal merger takes place when: A. a firm acquires a competitor. B. similar firms agree to compete. C. firms in different industries merge. D. a firm diversifies by merging with a foreign firm. Question 3 The Sherman Act of 1890: A. exempted labor unions from antitrust prosecution. B. included stringent enforcement provisions. C. outlawed unfair business practices to exclude rivals from selling in markets. D. outlawed all monopolies. Question 4 A conglomerate merger involves combining firms: A. involved in the same industry. B. that are based in different countries. C. from unrelated industries. D. that control various stages of the production of a particular good from raw materials to finished manufacture.
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