Apple acquiring P.A. Semi is an example of which type of business integration?

• A. Conglomerate merger
• B. Market segmentation
• C. Vertical integration
• D. Horizontal integration

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the types of business integration. Horizontal integration occurs when a company acquires or merges with a competitor in the same industry and at the same stage of production.
2. Step 2: Vertical integration happens when a company acquires or merges with another company that operates at a different stage of the production process, either upstream (suppliers) or downstream (distributors).
3. Step 3: Conglomerate merger involves companies from unrelated industries combining, which diversifies their business activities without direct connection in the production chain.
4. Step 4: Market segmentation is a marketing strategy, not a type of business integration, where a company targets different groups of consumers.
5. Step 5: Since Apple acquiring P.A. Semi involves Apple integrating a supplier of semiconductor chips (an upstream stage in production), this is an example of vertical integration.