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WAEC Commerce 2025 Question 9

Question 9

Business Combinations

If a groundnut farmer takes over a vegetable oil processing company, the merger is

  1. A.backward integration.
  2. B.diagonal integration.
  3. C.forward integration.
  4. D.horizontal integration.
Show the answer and explanation

Answer: C (forward integration.)

Explanation

The farmer moves forward to the next stage of production (processing his groundnuts into oil), so it is forward integration.