Question

In class, an example of a company that grow plants in order to

provide the raw materials for their products, thus was an example
of vertical integration was
Group of answer choices
1. Fuji
2. Theranos
3. Pier

Answer 1

Vertical integration is a method of growth where a company acquires other companies involved in all aspects of a product's lifecycle. An example of vertical integration is John D. Rockefeller's oil company, which acquired businesses in barrel-making, pipelines, tanker cars, and railroads to control the transportation and production of their products.

Step-by-step explanation:

Vertical integration is a method of growth where a company acquires other companies that include all aspects of a product's lifecycle, from the creation of the raw materials through the production process to the delivery of the final product. An example of a company that practices vertical integration is John D. Rockefeller's oil company. Rockefeller acquired companies involved in barrel-making, pipelines, tanker cars, and railroads to control the transportation and production of his oil products. This allowed him to lower prices and dominate the industry.