Which of the following is an example of vertical integration?
A)A newsprint manufacturer owns a forestry company.
B)Zeke is on the boards of directors of an oil exploration company and a gasoline retailer.
C)A steel company removes two levels from its organizational hierarchy.
D)An automobile company introduces computer aided design.
E)Two banks agree to merge.

Question

Quizplus · Accepted Answer

Vertical integration occurs when a company expands its operations into an area that's at a different point on the same production path, such as a newsprint manufacturer owning a forestry company. This allows the company to control more of its supply chain.

Which of the Following Is an Example of Vertical Integration