Which one of the following is an example of BACKWARD integration?
A) an airline company purchasing a retail clothing store
B) a personal computer manufacturer opening retail computer sales stores
C) a local bank opening branch offices in neighboring states
D) an automobile company opening a plant to manufacture spark plugs

Question

Quizplus · Accepted Answer

Backward integration occurs when a company expands its role to fulfill tasks formerly completed by businesses up the supply chain. In this case, an automobile company manufacturing its own spark plugs is an example of backward integration, as it involves producing components that were previously purchased from suppliers.

Which One of the Following Is an Example of BACKWARD