A firm that controls both the upstream as well as the downstream stages of production is said to be:
A)functionally integrated.
B)perpendicularly integrated.
C)vertically integrated.
D)horizontally integrated.

Question

Quizplus · Accepted Answer

Vertical integration refers to a firm's ownership and control over multiple stages of the production or distribution process, from raw materials to finished goods. This includes both upstream (supplier) and downstream (distributor) activities. Therefore, the correct choice is vertically integrated.

A Firm That Controls Both the Upstream as Well as the Downstream