For a soft drinks company, which of the following will be considered forward vertical integration?
A) establishing a company that manufactures and sells snack foods
B) buying a bottling and trucking company that distributes soft drinks
C) buying sugar plantations
D) taking over a company that provides software services

Question

Quizplus · Accepted Answer

Forward vertical integration refers to a company expanding its operations into activities that are closer to the end consumer. By buying a bottling and trucking company that distributes soft drinks, the soft drinks company is moving forward in the supply chain, directly controlling the distribution process. This is a classic example of forward vertical integration.

For a Soft Drinks Company, Which of the Following Will