1) Which of the following is an example of conglomerate integration:         a

Option d: A car manufacturer buys a farm equipment retail outlet.

Explanation: Conglomerate merger is when two unrelated firm merge. In other words, when two firm merge whosestrategical operation is not same or they are of different business, it is called conglomerate merger. A can company may merge with a farm equipment retail outlet where both the business are diffrerent. Thus it is known as conglomerate mearger.

Answer to the question no. 12:

Option c: A car manufacturer buys a car retail outlet.

Explanation: Forward vertical integration is when a firm merges with another firm or open their own selling outlets in order to reduce the involvement of middleman, it is known as forward vertical merger.

Answer to the question no. 13:

Option b: A car manufacturer buys a tire manufacturer.

Explanation: Backward vertical integration is when a firm merges with another firm which produces the products that are used for the production of the first firms product. Car need tyre, so, under backward merger, the car manufaturing firm will merge with the tyre manufaturing firm which will reduce the cost.

Answer to the question no. 14:

Option b: Involves various stages in a takeover

Answer to the question no. 15:

Option a: The % change in quantity demanded is less than the % change in income.

Explanation: The demand for a good is said tobe income inelastic, if the percentage change in the income is greater than the percentage change in the quantity demanded. It will imply that with the change in the income the demand is changing but by a less proportion.