(a) The requirement is to identify the type of merger
described. Answer (a) is correct because vertical integration is a
merger involving companies in the same industry, but at different
levels of the supply chain. Answer (b) is incorrect because a
conglomerate merger is one involving firms from different industries.
Answer (c) is incorrect because market extension involves
moving into new market areas. Answer (d) is incorrect because a
horizontal merger involves firms that are competitors in the same