Which of the following is NOT a disadvantage of vertical integration? a) Increased business riskb) Decreased product qualityc) Capacity matching problemsd) Slowness to embrace technological advancese) Less flexibility in accommodating shifting buyer preferences

Answer: The following is not a disadvantage of vertical integration: Decreased product quality

Vertical integration refers to an arrangement under which the supply chain of a organization is closely-held by that organization. In this mostly each associate of the supply chain bring forth a different commodity or service, and the commodity pools to satisfy a public need.

This has its advantages and disadvantage but nevertheless, it tends to increase the productivity instead of decreasing it.

Therefore, the correct option is (b)