Question

Why did business leaders begin the practice of vertical integration?

A. Big companies could grow by merging with other companies or acquiring them
B. Factory workers could start in low positions and work their way up to management.
C. Large corporations could control the cycle of a product from creation to sale,
D. Small companies could grow so that they could compete with the larger companies,

Answer 1

1: D Andrew Carnegie

2: B Large companies grew larger by merging with other companies or acquiring them

3: B laissez-faire

4: A Markets went from global to national as goods could be sold across the country

Explanation: i got 100%

Answer 2

Business leaders begin the practice of vertical integration so that large corporations could control the cycle of a product from creation to sale.

Answer: Option C

Explanation:

Vertical integration is a blend of horizontal integration. Here many horizontal rows are involved as manufacturing & services unit or supply chain responsible for different products but work for common goal. Vertical integration is a setup which involves company's supply chain and owned by itself only i.e under single corporation.

Hold up problems can be prohibited by such integrations while expansion can bring cons also like anti-competitiveness and hindrance free competition in an open marketplace. For example Alphabet which is conglomerate, by becoming parent company for Google and several former's Google subsidiaries.