Which of the following is an example of backward vertical integration?
A) Car manufacturer buys car manufacturer
B) Car manufacturer buys a tyre manufacturer
C) Car manufacturer buys a car retail sales outlet
D) Car manufacturer buys ice cream retail outlets

Question

Quizplus · Accepted Answer

Backward vertical integration occurs when a company acquires another company that supplies inputs to the acquiring company's production process. In this case, a car manufacturer buying a tyre manufacturer is an example of acquiring a supplier, which is backward vertical integration.

Which of the Following Is an Example of Backward Vertical