If a sailboat manufacturer has an agreement with the firm that produces the engines for the sailboats, this is an example of a _______agreement.

Question

Quizplus · Accepted Answer

A vertical agreement is a form of vertical integration where two or more firms at different levels of the supply chain agree to work together. In this case, the sailboat manufacturer and the engine producer are at different levels of the supply chain, and their agreement to work together is an example of a vertical agreement.

If a Sailboat Manufacturer Has an Agreement with the Firm