A salad dressing company buys a large olive grove.The olive grove produces olive oil,a key ingredient in many salad dressings.The salad dressing company is practicing which of the following?

Question

Quizplus · Accepted Answer

Backward vertical integration occurs when a company acquires or merges with a supplier or producer of raw materials needed for its products, as the salad dressing company did by buying the olive grove to secure its supply of olive oil.

A Salad Dressing Company Buys a Large Olive Grove