WAEC Commerce 2025 Objective — Question 9
Question 9 of 51 from the West African Examinations Council (WAEC) Commerce 2025 Objective paper, with the correct answer and a full explanation.
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If a groundnut farmer takes over a vegetable oil processing company, the merger is
- A. backward integration
- B. diagonal integration
- C. forward integrationCorrect
- D. horizontal integration
Explanation
Since groundnut is a raw material for vegetable oil, a farmer buying over a vegetable oil processing company is a forward integration.
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