Answer (A) is correct . The acquisition of a shoe retailer by a shoe manufacturer is an example of vertical integration. Vertical integration is typified by a merger or acquisition involving companies that are in the same industry but at different levels in the supply chain. In other words, one of the companies supplies inputs for the other.
Answer (B) is incorrect because A conglomerate is a company made up of subsidiaries in unrelated industries.
Answer (C) is incorrect because Market extension involves expanding into new market areas.
Answer (D) is incorrect because Horizontal integration involves a merger between competing firms in the same industry.
|
