Your oldest supplier, Zorro Distributors, is a family-owned firm.Recently, the firm's president, Diego De La Vega, made the decision to retire.To his disappointment, none of his five children stepped forward to take his place at the helm of the firm.Sr.De La Vega is concerned that if he sells his company to a larger distributor, many of his employees will lose their jobs.You approach your old friend with a generous offer to buy Zorro and continue its current operations.Should your offer be accepted, Taco Rocket would be undertaking ________.

Question

Quizplus · Accepted Answer

Backward vertical integration occurs when a company acquires or merges with a supplier or distributor to control its supply chain. In this case, Taco Rocket buying Zorro Distributors, a supplier, fits this definition.

Your Oldest Supplier, Zorro Distributors, Is a Family-Owned Firm