Which of the following is an example of forward vertical integration?
A) A start-up company created by an entrepreneur enters an industry
B) A supplier firm chooses to enter its customer's business
C) A foreign firm plans to enter a new geographic area
D) A buyer firm decides to enter its supplier's business
E) A local firm diversifies itself by entering a new industry

Question

Quizplus · Accepted Answer

Forward vertical integration occurs when a company moves downstream in the supply chain, such as a supplier entering the business of its customers.

Which of the Following Is an Example of Forward Vertical