What happens in backward integration?
A) The firm begins to control the outlets for its products.
B) The firm buys other non-related firms.
C) A firm takes over operations that were previously the responsibility of its suppliers.
D) The firm merges with similar firms from other countries.
E) The firm expands its geographical reach.

Question

Quizplus · Accepted Answer

Backward integration involves a firm taking over operations that were previously the responsibility of its suppliers. This can include acquiring suppliers or establishing its own production facilities to control the supply chain.

What Happens in Backward Integration