A Good Example of Vertical Integration Is

question 29

Multiple Choice

A good example of vertical integration is

• A) a producer of organic vegetables deciding to expand into the production of organic fruits.
• B) a supermarket chain acquiring a distributor of fresh fruits and vegetables.
• C) a crude oil refiner purchasing a railroad company.
• D) a hospital opening a nursing home for the aged.
• E) a maker of prescription drugs acquiring a chain of hospitals.

---

Definitions:

Cost of Debt

The effective rate that a company pays on its borrowed funds, which can include loans, bonds, and other forms of debt.

Debt/Equity Ratio

This ratio demonstrates the equity to debt proportion in the context of financing company assets.