Paper 1 · mergers and integration
Two giant shoe manufacturing firms, both at the same stage of production in the same industry, decide to merge into a single company. This type of merger is best classified as a:
AConglomerate merger
BHorizontal merger
CJoint venture
DVertical merger
Explanation: A horizontal merger joins two firms operating at the same stage of production in the same industry, such as two shoe manufacturers. This differs from a vertical merger, which joins firms at different stages of the same supply chain, and a conglomerate merger, which joins firms in unrelated industries.
Derived from ZIMSEC Business_studies Paper 1, November 2018, Q3
