Kojack Film needs silver to make photographic film. To ensure that they will have an ample supply of silver at a reasonable price, the company purchases a silver mine. This is an example of a(n) _____________.

Question

Quizplus · Accepted Answer

This is an example of a vertical acquisition because Kojack Film is acquiring a supplier in its production chain (a silver mine, which supplies the raw material needed for photographic film), rather than a competitor or a company in an unrelated business. Vertical acquisitions are aimed at securing supplies and reducing production costs.

Kojack Film Needs Silver to Make Photographic Film