The acquisition of a paper mill by a large publishing company is an example of
A)horizontal integration.
B)vertical integration.
C)diversification.
D)consolidation.

Question

The acquisition of a paper mill by a large publishing company is an example of
A)​horizontal integration.
B)​vertical integration.
C)​diversification.
D)​consolidation.

Quizplus · Accepted Answer

Vertical integration involves acquiring a company or business in the same supply chain or production process. In this case, the publishing company is acquiring a paper mill, which is a crucial supplier of raw materials for their publishing operations. This enables the publishing company to have more control over their supply chain and potentially lower production costs.

The Acquisition of a Paper Mill by a Large Publishing