Which of the following best describes vertical integration?
A) to sell products to a supplier or a distributor
B) to develop the ability to produce products which complement the original product
C) to produce goods or services previously purchased
D) to develop the ability to produce the specified good more efficiently than before
E) to build long-term partnerships with a few suppliers

Question

Quizplus · Accepted Answer

Vertical integration refers to the process of a company taking control over its supply chain by producing goods or services that it previously purchased from suppliers. This often involves acquiring other companies, or controlling production facilities that were once operated by a supplier. Therefore, option C "to produce goods or services previously purchased" best describes vertical integration.

Which of the Following Best Describes Vertical Integration