When a buyer decides to enter its supplier's business, the strategy is referred to as _____.
A) forward horizontal integration
B) backward vertical integration
C) horizontal diversification
D) backward horizontal integration
E) forward vertical integration

Question

Quizplus · Accepted Answer

Backward vertical integration occurs when a company expands its role to fulfill tasks formerly completed by businesses up the supply chain, such as a buyer entering its supplier's business.

When a Buyer Decides to Enter Its Supplier's Business, the Strategy