If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs), this would be an example of:
A) a tying contract.
B) an administered channel system.
C) internal expansion.
D) vertical integration.
E) horizontal integration.

Question

Quizplus · Accepted Answer

This would be an example of vertical integration because the furniture retailer would be acquiring a company in the same industry but at a different level of the supply chain.

If a Large Furniture Retailer Were to Purchase Drexel (A