passwella.
Menu

WAEC Commerce 1997 Question 91

Question 91

Business Combinations

When firms that operate at different stages in the production of a commodity merge, this is known as

  1. A.horizontal integration
  2. B.vertical integration
  3. C.absorption
  4. D.conglomerate
  5. E.cartel
Show the answer and explanation

Answer: B (vertical integration)

Explanation

Merging firms at different stages of the same production chain is vertical integration.