Hendricks Ceramics sells items it buys from ceramic factories. If it were to purchase one of these factories, it would be engaging in ________ integration.
A) forward vertical
B) backward vertical
C) horizontal
D) concentrated

Question

Quizplus · Accepted Answer

Backward vertical integration involves a company moving backwards in its supply chain by acquiring one of its suppliers. In this case, Hendricks Ceramics would be purchasing a ceramic factory that supplies them with items, which would be an example of backward vertical integration. Forward vertical integration would involve purchasing a company that is further down the supply chain, while horizontal integration would involve purchasing a company in the same industry or market as Hendricks Ceramics. Concentrated integration is not a recognized type of integration.

Hendricks Ceramics Sells Items It Buys from Ceramic Factories