Which of the following is the best example of forward vertical integration?
A)a car dealership opening up its own automobile manufacturing plant
B)a car company opening its own dealerships to sell its products directly to customers
C)a car company opening its own chain of video rental stores
D)a car company opening a plant to produce motorcycles

Question

Quizplus · Accepted Answer

Forward vertical integration occurs when a company expands its operations into an area that is closer to the end consumer. In this case, a car company opening its own dealerships to sell its products directly to customers is an example of moving forward in the supply chain towards the consumer, hence it is considered forward vertical integration.

Which of the Following Is the Best Example of Forward