A media company acquires a film production company, a film editing firm, and a film distribution firm. By owning different stages of movie making, the company is ________ integrated.

Question

Quizplus · Accepted Answer

Vertical integration is the merging of companies that are in different stages of production of a product or service. In this case, the media company has acquired firms that are involved in different stages of movie making, namely film production, editing, and distribution. Hence, the company is vertically integrated.

A Media Company Acquires a Film Production Company, a Film