F.4 Economics Chapter 12

Giordano International Limited is a retailer of casual wear. It has launched the Giordano Ladies, which provides luxury clothes and suits for ladies. It is an example of expansion.

• horizontal

• vertical

• lateral

• conglomerate

A famous singer expands his show business by producing stationery with his picture on it.  This type of expansion is                                                 

• horizontal

• forward

• backward

• conglomerate

To ABC Diamond Cutting Factories, the types of expansion shown by X and Y are ________ expansion and ___________ expansion respectively.

• backward, conglomerate       

• backward, lateral

• forward, conglomerate         

• forward, lateral

Which of the following is an example of vertical expansion?

• A supermarket opens another branch.

• A farmer sets up a stall to sell his products.

• A raincoat factory combines with a jeans factory.

• A property developer integrates with a credit company.

Suppose Google only provided search engine services and YouTube only provided online video streaming services. Google acquired YouTube for US$1.65bn. The above expansion belongs to _____ .

• horizontal integration

• vertical integration

• lateral integration

• conglomerate integration