A long-term contract is considered vertical integration.

Question

Quizplus · Accepted Answer

A long-term contract is a type of contract between two or more parties that specifies the terms and conditions of an ongoing business relationship or transaction. Vertical integration, on the other hand, is a business strategy where a company acquires or merges with another company that operates in a different level of the supply chain. Therefore, a long-term contract and vertical integration are not the same thing.

A Long-Term Contract Is Considered Vertical Integration