Ask Question
6 June, 10:24

If the owner of a jewelry store who normally purchased diamonds from a diamond brokerage firm were to open his own diamond brokerage firm, this would be an example of forward vertical integration. T/F

+2
Answers (1)
  1. 6 June, 14:07
    0
    False

    Explanation:

    Forward Vertical Integration occurs when a company acquires one of its suppliers.

    In this case, we do not have an example of forward vertical integration because the owner of the jewerly store did not purchase the supplier: the diamond brokerage firm. He instead opted to start his own brokerage firm.

    The case in the question is an example of forward vertical integration, that occurs when a company moves along the supply chain by starting its own subsidiares instead of buying existing ones.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If the owner of a jewelry store who normally purchased diamonds from a diamond brokerage firm were to open his own diamond brokerage firm, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers