A large food retailer acquiring a cheese factory is an example of:
A) dual distribution.
B) vertical integration.
C) a tying contract.
D) horizontal integration.
E) internal expansion.

Question

Quizplus · Accepted Answer

Vertical integration involves a company acquiring a supplier or distributor. In this case, the food retailer (the buyer) is acquiring the cheese factory (the supplier), which falls under vertical integration.

A Large Food Retailer Acquiring a Cheese Factory Is an Example