If Slick Shades, a sunglasses manufacturer, purchases several local retail shops to sell their sunglasses, this is an example of ______.
A)backward integration
B)outsourcing
C)divestiture
D)forward integration

Question

Quizplus · Accepted Answer

Forward integration is a type of vertical integration where a company expands its business activities by acquiring distributors or retailers that sell its products. In this scenario, Slick Shades is expanding its business by purchasing retail shops to sell their sunglasses directly to customers, which is an example of forward integration.

If Slick Shades, a Sunglasses Manufacturer, Purchases Several Local Retail