Question

If Hickory Divine were to open its own chain of furniture stores, this would be an example of

A) complementors.
B) backward vertical integration.
C) consolidation.
D) forward vertical integration.

Answer 1

Hickory Divine opening its own furniture stores is an example of forward vertical integration, where a company expands into subsequent stages of the industry.

Step-by-step explanation:

If Hickory Divine were to open its own chain of furniture stores, this would be an example of forward vertical integration. Forward vertical integration occurs when a company expands its operations into a forward stage of the industry - in this case, from manufacturing furniture to retailing it directly to consumers. This strategic move allows a company to control more of its supply chain, from production to sales, potentially leading to increased market control and streamlined costs.