A coffee chain buying its own coffee farm to control input cost is practising:
AVisible integration
BVertical integration
CVirtual integration
DVariable integration
Answer & Solution
Correct answer: B. Vertical integration
1. The firm merges with its own supplier.
2. It then owns the earlier stage of production.
3. That is vertical integration.
_Source: OpenStax Principles of Finance, Chapter 20, Risk Management and the Financial Manager._
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