If a diamond mine buys a diamond-cutting operation, this is an example of
A) departmental integration.
B) backward integration.
C) economy of scale.
D) forward integration.
E) supporting activity.

Question

Quizplus · Accepted Answer

Forward integration is the type of integration where a company acquires a business that is closer to the end consumer. In this case, the diamond mine is acquiring a diamond-cutting operation, which is closer to the end consumer since the cut diamond will eventually be sold to customers.

If a Diamond Mine Buys a Diamond-Cutting Operation, This Is