Question 7
Business CombinationsMusa obtains wool from his sheep, spins and transforms it into cloth which he sells to consumers. This is a form of
- A.vertical integration
- B.horizontal integration
- C.forward integration
- D.backward integration.
Show the answer and explanation
Answer: A (vertical integration)
Explanation
Musa controls successive stages of production (raw wool, spinning, cloth, selling), which is vertical integration.