A salad dressing company that buys a large olive grove to provide olive oil is practicing which of the following?
A)concentration
B)forward vertical integration
C)backward vertical integration
D)horizontal integration

Question

Quizplus · Accepted Answer

Backward vertical integration occurs when a company acquires a supplier to secure a stable supply of inputs. In this case, the salad dressing company is acquiring an olive grove to secure a stable supply of olive oil, which is a key ingredient in their products.

A Salad Dressing Company That Buys a Large Olive Grove