If a Hotel Chain Buys One of Its Suppliers, It

question 4

Multiple Choice

If a hotel chain buys one of its suppliers, it is engaging in what type of growth?

• A) Backward integration
• B) Vertical integration
• C) Forward integration
• D) Horizontal integration

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Definitions:

Future Price

The price of a good or service that is agreed upon today for delivery and payment at a future date.

Demand Curve

A graph depicting the relationship between the quantity of a good that consumers are willing to buy and its price.

Shift

A change in the position or direction of something, often used in economics to describe changes in demand or supply curves.

Caffeine

A stimulant found in coffee, tea, and other products, known for its ability to increase alertness and reduce feelings of tiredness.