A backward vertical integration occurs when a company expands into a new industry ________.
A) that helps create a competitive advantage
B) that produces inputs for the company's products
C) that is not related to the current business in any way
D) that uses or distributes the company's products

Question

Quizplus · Accepted Answer

Vertical integration is a corporate-level strategy in which a company expands its business operations either backward into a new industry that produces inputs for the company's products (backward vertical integration) or forward into a new industry that uses, distributes, or sells the company's products (forward vertical integration).

A Backward Vertical Integration Occurs When a Company Expands into a New