Why Do Vertically Integrated Organisations Own and Often Manage Their

question 2

Multiple Choice

Why do vertically integrated organisations own and often manage their upstream (or backward) suppliers?

• A) In order to create raw materials of a consistent quality
• B) In order to create a secure supply of raw materials
• C) To set up forward (or downstream) subsidiaries to distribute and market their products or services
• D) To use products or services themselves
• E) All of these responses are correct.

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Definitions:

Consistent

In logic and mathematics, a set of statements or propositions is consistent if they do not lead to a contradiction, meaning they can all be true at the same time.

Contingency

An impending event or circumstance with potentiality but lacks predictability with surety.

Symbolic Form

A way of representing logical sentences using symbols and variables instead of words.

Components

Individual parts or elements that together form a whole system or object.