Vertical integration is a business strategy in which a company purchases its ______ suppliers.
A)downstream
B)internal
C)instream
D)upstream

Question

Quizplus · Accepted Answer

Vertical integration involves purchasing upstream suppliers, which refers to the businesses or companies that provide the raw materials, products, or services that the purchasing company needs to produce its own products or services. By doing this, the company can control the entire supply chain, including production, distribution, and sales, and reduce its dependence on external suppliers. This strategy can be beneficial for companies that want to improve efficiency, reduce costs, and increase their competitive advantage.

Vertical Integration Is a Business Strategy in Which a Company