ECONOMICS (CBSE/UGC NET)

ECONOMICS

COMPETITION AND MARKET STRUCTURES

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A company bought out every step of the production process from beginning to end. They own the production, the transportation of the product, and the stores where it’s sold. What is this describing?

A	conglomerate
B	horizontal merger
C	vertical merger
D	partnership

Explanation:

Detailed explanation-1: -What Is Vertical Integration? Vertical integration is a strategy that allows a company to streamline its operations by taking direct ownership of various stages of its production process rather than relying on external contractors or suppliers.

Detailed explanation-2: -Vertical integration is a corporate strategy that involves growth through streamlining operations. This occurs when one company acquires a producer, vendor, supplier, distributor, or other related company within the same industry.

Detailed explanation-3: -Vertical integration is a business strategy in which a company controls multiple stages of its production process and supply chain. Advantages of vertical integration include resilience to supply chain disruptions, market power, and economies of scale.

Detailed explanation-4: -Vertical integration is when a firm extends its operations within its supply chain.

There is 1 question to complete.