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<!doctype html><html class=html lang=en-us dir=ltr><head><meta charset=utf-8><meta name=viewport content="width=device-width"><title>Unit 11 | Freedoms4</title><link rel=stylesheet href=/css/style.min.34d0accb85f8ec23ceee8c29eef5907823b531d8acb9e6bdf45a3b37ad028d30.css integrity="sha256-NNCsy4X47CPO7owp7vWQeCO1Mdisuea99Fo7N60CjTA=" crossorigin=anonymous><link rel=icon href=/favicon.ico><meta name=description content="May 17, 2026 Modes of Business Combination A) Associations Trade Association Chamber of Commerce Informal agreements B) Federations Formal agreements Pools Cartels C) Consolidations Partials Consolidations
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a. Trust
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b. Holding Companies
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c. Community of Interest
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Complete Consolidations
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a. Mergers
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b. Acquisition
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c. Amalgamation
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Types of Business Combination A) Horizontal These companies operate at the same level of production, distribution or supply chain.
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A) Vertical 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:"><meta property="og:url" content="https://freedoms4.org/uninotes/s1/bo-dcm1109/unit11/self/"><meta property="og:site_name" content="Freedoms4"><meta property="og:title" content="Unit 11"><meta property="og:description" content="May 17, 2026 Modes of Business Combination A) Associations Trade Association Chamber of Commerce Informal agreements B) Federations Formal agreements Pools Cartels C) Consolidations Partials Consolidations
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a. Trust
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b. Holding Companies
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c. Community of Interest
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Complete Consolidations
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a. Mergers
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b. Acquisition
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c. Amalgamation
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Types of Business Combination A) Horizontal These companies operate at the same level of production, distribution or supply chain.
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A) Vertical 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:"><meta property="og:locale" content="en_us"><meta property="og:type" content="article"><meta property="article:section" content="uninotes"><meta itemprop=name content="Unit 11"><meta itemprop=description content="May 17, 2026 Modes of Business Combination A) Associations Trade Association Chamber of Commerce Informal agreements B) Federations Formal agreements Pools Cartels C) Consolidations Partials Consolidations
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a. Trust
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b. Holding Companies
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c. Community of Interest
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Complete Consolidations
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a. Mergers
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b. Acquisition
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c. Amalgamation
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Types of Business Combination A) Horizontal These companies operate at the same level of production, distribution or supply chain.
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A) Vertical 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:"><meta itemprop=wordCount content="247"><meta itemprop=keywords content="S1,BO DCM1109"><link rel=stylesheet href=/css/custom.css><script>(function(){var e=localStorage.getItem("theme");e&&document.documentElement.setAttribute("data-theme",e),localStorage.getItem("f4_username")==="hyzen"&&document.documentElement.classList.add("hyzen-user")})()</script><script async src=https://plausible.freedoms4.org/js/pa-5BKl0z0RLzwrclKq4y-qk.js></script><script>(window.plausible=window.plausible||function(){(plausible.q=plausible.q||[]).push(arguments)},plausible.init=plausible.init||function(e){plausible.o=e||{}}),plausible.init()</script></head><body class=body><header class=header><div class=brand><img src=/logo.png alt="Freedoms4 logo"><h1>Freedoms4</h1><div class=brand__actions><button class=theme-toggle id=theme-toggle aria-label="Toggle theme" title="Toggle dark/light mode">
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› <a href=/uninotes/s1/>S1</a> › <a href=/uninotes/s1/bo-dcm1109/>BO DCM1109</a> ›
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<a href=/uninotes/s1/bo-dcm1109/unit11/>Unit 11</a> ›
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<span>Self</span></nav><div class=uninotes-meta><span class=uninotes-meta__pill>S1</span> <span class=uninotes-meta__pill>BO DCM1109</span>
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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>
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