A firm that develops the capacity to sell its products by investing in marketing and selling operations is demonstrating ________.
A) forward vertical integration
B) backward vertical integration
C) centralization
D) decentralization

Question

Quizplus · Accepted Answer

Forward vertical integration involves a firm expanding its operations by investing in marketing and selling activities to increase its capacity to sell its own products directly to end-users, rather than relying on intermediaries. Backward vertical integration involves a firm expanding its operations by investing in activities further up the supply chain, such as manufacturing or production. Centralization and decentralization refer to the degree of decision-making authority held by top management versus lower-level employees.

A Firm That Develops the Capacity to Sell Its Products