Which of the Following Best Illustrates Forward Vertical Integration

question 108

Multiple Choice

Which of the following best illustrates forward vertical integration?

• A) A firm that manufactured and sold car engines to major automobile companies launches its own line of cars.
• B) A chain of ice cream parlors launches a brand of toys and accessories for children.
• C) A multinational coffee chain sources its coffee beans from plantations in Brazil and Vietnam.
• D) A designer shoe company that previously purchased leather from external suppliers establishes its own leather tannery.

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Definitions:

Managing Finances

The practice of handling monetary resources efficiently, including budgeting, investing, and saving.

Adequate Cash Flow

The level of cash inflow that is sufficient to cover the outflow necessities for a business to operate smoothly and meet its financial obligations.

Home Based

Pertaining to businesses or activities that are operated out of a person's residence, rather than from an external office or commercial establishment.

Small Business Administration

A U.S. government agency designed to support and assist small businesses through funding, training, and advisory services.