Cake-a-licious, a large bakery business, purchased a wheat farm in order to reduce the risk associated with its dependency on flour. This is an example of _____.

Question

Quizplus · Accepted Answer

Backward vertical integration involves a company acquiring a supplier or a manufacturing facility. In this case, Cake-a-licious purchasing a wheat farm is an example of backward vertical integration, as it is acquiring a supplier of its key input, flour.

Cake-A-Licious, a Large Bakery Business, Purchased a Wheat Farm in Order