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JAMB Commerce 2020 Objective — Question 12

Question 12 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2020 Objective paper, with the correct answer and a full explanation.

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12. When two companies that are producing same thing and at the same level of production comes together to form a single company for the sake of synergy is referred to as

  • A. A. joint venture
  • B. B. horizontal integrationCorrect
  • C. C. conglomerate
  • D. D. vertical integration

Explanation

Horizontal integration is the coming together of two or more companies in the same line and level of production to form a single company so as to prevent competition between them and to gain synergy.

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