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WAEC Commerce 2000 Question 5

Question 5

Business Combinations

The coming together of two or more firms at different stages of production is

  1. A.horizontal merger
  2. B.vertical merger
  3. C.amalgamation
  4. D.cartel
Show the answer and explanation

Answer: B (vertical merger)

Explanation

Firms at different stages of production (e.g. a farm and a factory) joining together form a vertical merger.