What kind of business structure is represented by owning both a major league sports team and a cable channel outlet that broadcasts the team's games?
A) vertical integration
B) horizontal consolidation
C) horizontal integration
D) multilevel merger

Question

Quizplus · Accepted Answer

Vertical integration occurs when a company controls multiple parts of the supply chain, such as owning both a producer and distributor. Owning both a major league sports team and a cable channel outlet that broadcasts the team's games represents vertical integration since the company controls both the production (the sports team) and distribution (the cable channel) of their product.

What Kind of Business Structure Is Represented by Owning Both