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A vertical merger combines firms that:
AOperate in fully unrelated industries
BOperate in the same industry making similar products
COperate at different stages of the same supply chain
DShare no production process or distribution
Answer & Solution
Correct answer: C. Operate at different stages of the same supply chain
1. Identify what the question asks: this concept maps to verticalmerger (§3).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (C).
_Source: ICAI BoS CA Final Paper 2, Ch 14 "Mergers Acquisitions and Corporate Restructuring"_
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