Which of the following processes is most representative of a vertically integrated firm on the "make" end of the make-or-buy continuum?
A)Arm's length market transactions
B)Long-term contracts
C)Strategic alliances and joint ventures
D)Parent/subsidiary relationships
E)Perform activity internally

Question

Quizplus · Accepted Answer

Vertical integration is the degree to which a firm owns its upstream suppliers and downstream buyers. Making refers to the firm's decision to produce goods and services in-house rather than outsourcing them. Thus, performing activities internally (Choice E) is most representative of a vertically integrated firm on the make end of the make-or-buy continuum.

Which of the Following Processes Is Most Representative of a Vertically