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Economics (AS & A Level) · Feb / March 2024 · Paper 32 · Question 9

9708Growth and survival of firms

Company R manufactures steel. Company S produces ships. Company T operates oil tankers. Company V operates cruise liners. Which statement is correct?

  1. AIf R takes over S, this is an example of forwards vertical integration.
  2. BIf S takes over V, this is an example of backwards vertical integration.
  3. CIf T takes over S, this is an example of diversification.
  4. DIf V takes over S, this is an example of horizontal integration.

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Correct answer: A. If R takes over S, this is an example of forwards vertical integration.

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