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 <span class=uninotes-meta__pill>BO DCM1109</span></div><h1>Unit 11</h1><p class=unit-choice__subtitle>Choose type:</p><div class=unit-choice__options><a class="unit-choice__card unit-choice__card--self" href=/uninotes/s1/bo-dcm1109/unit11/self/><div class=unit-choice__icon><svg viewBox="0 0 24 24" width="32" height="32" fill="currentColor"><path d="M12 3 1 9l4 2.18v6L12 21l7-3.82v-6l2-1.09V17h2V9L12 3zm6.82 6L12 12.72 5.18 9 12 5.28 18.82 9zM17 15.99l-5 2.73-5-2.73v-3.72L12 15l5-2.73v3.72z"/></svg></div><div class=unit-choice__label>Self</div><div class=unit-choice__desc>Self-study notes</div></a><div class="unit-choice__card unit-choice__card--live unit-choice__card--unavailable"><div class=unit-choice__icon><svg viewBox="0 0 24 24" width="32" height="32" fill="currentColor"><path d="M17 10.5V7c0-.55-.45-1-1-1H4c-.55.0-1 .45-1 1v10c0 .55.45 1 1 1h12c.55.0 1-.45 1-1v-3.5l4 4v-11l-4 4z"/></svg></div><div class=unit-choice__label>Live</div><div class=unit-choice__desc>Not available</div></div></div></main><footer class=footer><p class=footer__copyright-notice>&copy; <a href=https://freedoms4.org>freedoms4.org</a>
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 <span class="uninotes-meta__pill uninotes-meta__pill--self">Self</span></div><h1>Unit 11</h1><details class=toc><summary class=toc__summary>Table of Contents</summary><nav id=TableOfContents><ul><li><ul><li><a href=#may-17-2026><em><strong>May 17, 2026</strong></em></a></li></ul></li><li><a href=#modes-of-business-combination>Modes of Business Combination</a><ul><li><a href=#a-associations>A) Associations</a></li><li><a href=#b-federations>B) Federations</a></li><li><a href=#c-consolidations>C) Consolidations</a></li></ul></li><li><a href=#types-of-business-combination>Types of Business Combination</a><ul><li><a href=#a-horizontal>A) Horizontal</a></li><li><a href=#a-vertical>A) Vertical</a></li><li><a href=#c-circular>C) Circular</a></li><li><a href=#d-conglomerate>D) Conglomerate</a></li></ul></li></ul></nav></details><h3 class=heading id=may-17-2026><em><strong>May 17, 2026</strong></em></h3><h2 class=heading id=modes-of-business-combination>Modes of Business Combination</h2><h3 class=heading id=a-associations>A) Associations</h3><ol><li>Trade Association</li><li>Chamber of Commerce</li><li>Informal agreements</li></ol><h3 class=heading id=b-federations>B) Federations</h3><ol><li>Formal agreements</li><li>Pools</li><li>Cartels</li></ol><h3 class=heading id=c-consolidations>C) Consolidations</h3><ol><li><p>Partials Consolidations<br>a. Trust<br>b. Holding Companies<br>c. Community of Interest</p></li><li><p>Complete Consolidations<br>a. Mergers<br>b. Acquisition<br>c. Amalgamation</p></li></ol><h2 class=heading id=types-of-business-combination>Types of Business Combination</h2><h3 class=heading id=a-horizontal>A) Horizontal</h3><p>These companies operate at the same level of production, distribution or supply chain.</p><h3 class=heading id=a-vertical>A) Vertical</h3><p>A vertical combination occurs when companies operating at different stages of production or distribution of the same product combines together. There are two types of Vertical Combination:</p><ol><li><p><strong>Forward Combination:</strong> Forward integration takes place when a company moves forward in the supply chain, that is, closer to the final consumer.</p></li><li><p><strong>Backward Combination:</strong> Backward integration occurs when a company moves backward in the supply chain, that is, towards the source of raw materials.</p></li></ol><h3 class=heading id=c-circular>C) Circular</h3><p>A circular combination is a type of business combination in which two or more companies engaged in different but related lines of business combine together. These companies do not produce the same product (like in horizontal combination), but their products are related in nature, use similar raw materials, or serve similar customers. Example: a company manufacturing shoes combines with a company producing leather bags. Both companies are engaged in different products, but they use similar raw materials (leather) and target similar customers.</p><h3 class=heading id=d-conglomerate>D) Conglomerate</h3><p>A conglomerate combination is a type of business combination in which two or more companies engage in completely different and unrelated businesses merge or combine together.</p><nav class=page-nav><a class=page-nav__previous-link href=/uninotes/s1/bo-dcm1109/unit3/>← Unit 3</a>