A firm should consider vertical integration when Multiple Choice customer needs are evolving. the suppliers of raw materials to the firm are unable to maintain quality standards. the suppliers of the firm willingly cooperate with the firm. the competitive situation is highly volatile.

Question

Business

Kyler Marsh

31 August, 15:08

A firm should consider vertical integration when Multiple Choice customer needs are evolving. the suppliers of raw materials to the firm are unable to maintain quality standards. the suppliers of the firm willingly cooperate with the firm. the competitive situation is highly volatile.

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Answers (1)

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Kelvin Miles · Answer 1

The correct answer is letter "B": the suppliers of raw materials to the firm are unable to maintain quality standards.

Explanation:

Vertical integration takes place when a corporation buys and manages other firms along its supply chain. Vertical integration has two types: backward and forward. In backward vertical integration, a company such as a manufacturer owns companies that supply inputs (for example, raw materials) to ensure quality standards in the manufacturing process of the business. In forward vertical integration, a company owns another company in the supply chain to get closer to the end-customer.