If an automobile manufacturer has an agreement with its air bag supplier, this is an example of a _______agreement.
A)leftward
B)horizontal
C)vertical
D)rightward

Question

Quizplus · Accepted Answer

A vertical agreement is a contract or partnership between firms at different levels of the supply chain, such as a manufacturer and its supplier. In this case, the automobile manufacturer and air bag supplier are at different levels in the supply chain, making it a vertical agreement.

If an Automobile Manufacturer Has an Agreement with Its Air