Which of the following statements best describes the term backward integration?
A)A firm imposes extra costs on customers for changing brands.
B)A firm joins an alliance with its competitor to share materials.
C)A firm goes into the business of its former buyers, rather than continuing to sell products to them.
D)A firm purchases its suppliers in order to make a product itself rather than buying it from another firm.

Question

Quizplus · Accepted Answer

Backward integration refers to a situation where a firm buys its suppliers in order to make a product itself rather than buying it from another firm. This allows the firm to have greater control over the quality, cost, and availability of the inputs it needs to produce its product.

Which of the Following Statements Best Describes the Term Backward