Southern Poultry, a large poultry-growing operation, has agreed to be acquired by its' best customer, Chuck's Chicken 'N Biscuits, a popular regional chain of fast-food restaurants, to ensure the long-term health of the operation. This type of acquisition is called: a. a takeover. b. a vertical acquisition. c. a horizontal acquisition. d. a merger.

Question

Callum Cuevas

Social Studies

11 September, 06:57

Southern Poultry, a large poultry-growing operation, has agreed to be acquired by its' best customer, Chuck's Chicken 'N Biscuits, a popular regional chain of fast-food restaurants, to ensure the long-term health of the operation. This type of acquisition is called: a. a takeover. b. a vertical acquisition. c. a horizontal acquisition. d. a merger.

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Answers (1)

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Danna Kerr · Answer 1

Answer:c. a horizontal acquisition.

Explanation:

A horizontal acquisition result from a company bringing in another company which operates under the same industry and which is at the similar production level to work with

When they work with this other company it gives them better competitive levels as they establish broader market and which increase their profit and sales more than it would be if they were working as a singular company.

These are companies with similar good or services and which have their product at the same production cycle.