Economics 9708 · AS & A Level · 1.6

1.6 — practice question

Company R makes steel. Company S builds ships. Company T runs oil tankers. Company V runs cruise liners. Which statement is correct?

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

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