In many cases,________ integration is more profitable than ________ integration.
A) forward; backward
B) vertical; backward
C) backward; vertical
D) backward; forward
E) mass; forward

Question

Quizplus · Accepted Answer

Backward integration involves acquiring businesses that supply materials, components, or services to the acquiring company's core business. This can lead to cost savings, control over the supply chain, and improved efficiency. Forward integration involves acquiring businesses that distribute or sell the acquiring company's products or services. While this can increase control over distribution and potentially increase profit margins, it is often less profitable than backward integration. Therefore, backward integration is more profitable than forward integration in many cases.

In Many Cases,________ Integration Is More Profitable Than ________ Integration

In Many Cases, Integration Is More Profitable Than Integration