For a soft drinks company, which of the following will be considered backward vertical integration?
A) buying a bottling and trucking company that distributes soft drinks
B) establishing a company that manufactures and sells snack foods
C) taking over a company that provides software services
D) buying sugar plantations

Question

Quizplus · Accepted Answer

Backward vertical integration involves acquiring a supplier or raw material provider in the supply chain. Buying sugar plantations, which are a major ingredient in soft drink production, would be considered a backward vertical integration for a soft drink company. The other options (A, B, and C) are not related to the supply chain of soft drink production and therefore would not be considered backward vertical integration.

For a Soft Drinks Company, Which of the Following Will