Which of the following is an example of backward vertical integration?
A) A stratup company created by an entrepreneur enters an industry
B) A supplier firm chooses to enter its customers' 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

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 firm entering its supplier's business.

Which of the Following Is an Example of Backward Vertical