Business Mergers - Jamb Commerce Past Questions and Answers

Question 6:

• JAMB 1995

The merger of two companies producing the same type of products is an example of

A. Vertical integration
B. Horizontal integration
C. Lateral merger
D. An acquisition

Question 7:

• JAMB 1997

The major objective of corporate mergers is to

A. Minimize the effects of taxation
B. Increase financial advantage
C. Faclitate profit maximization
D. Enhance economies of scale

Question 8:

• JAMB 1999

Musa obtains wool from his sheep, spins and transforms it into cloth which he sells to consumers. This is a form of

A. Vertical integration
B. Horizontal integration
C. Forward intergration
D. Backward integration

Question 9:

• JAMB 2000

The measure of independence available to the individual business unit that come together is the main different between

A. Veritcal and horizontal integration
B. Mergers and acquisition
C. Consortium and almalgamation
D. Trust and cartel

Question 10:

• JAMB 2002

A group of companies is a collection of?

A. Subsidiaries and their holding company
B. Firms
C. Associates and their holding company
D. Industries