MoneyMatters, a finance firm, provides support to HMD Inc. in payroll and other financial matters. Later, HMD decides to create an in-house finance department to manage its financial matters. In this scenario, MoneyMatters loses its business because of the _____ done by HMD Inc.

Question

Quizplus · Accepted Answer

Vertical integration occurs when a company decides to take control of its supply chain or business processes, which in this case, HMD Inc. did by creating an in-house finance department, thus eliminating the need for MoneyMatters' services.

MoneyMatters, a Finance Firm, Provides Support to HMD Inc