If Big Scoops, a local ice cream parlor, purchases milk from a grocery store to make their ice cream, this is an example of______ .
A)outsourcing
B)using a spot market
C)backward integration
D)forward integration

Question

Quizplus · Accepted Answer

Purchasing milk from a grocery store for immediate use rather than establishing a long-term contract or producing the milk themselves is an example of using a spot market, where goods are traded for immediate delivery.

If Big Scoops, a Local Ice Cream Parlor, Purchases Milk