Three key functions for a vertically integrated firm are
A) supply management, production, and sales
B) resource agreements, manufacturing, and marketing
C) capital acquisition, equipment, and plant operations
D) raw material supply, manufacturing, and distribution

Question

Quizplus · Accepted Answer

The best choice out of the given options is D, which includes the key functions of raw material supply, manufacturing, and distribution. A vertically integrated firm has control over the entire supply chain, starting from the raw material stage to the distribution of the finished product. Therefore, it is essential for such a firm to have expertise and control over these functions. Option A includes sales, which is an important function, but not a key function for a vertically integrated firm. Option B includes "resource agreements," which is not a key function but rather a part of the supply chain management. Option C includes plant operations, which is a crucial function but not a key function of a vertically integrated firm.

Three Key Functions for a Vertically Integrated Firm Are