Final answer:
The assertion that vertical integration involves an alliance of organizations providing similar services is false; it actually consists of acquiring companies across a product's lifecycle. This strategy is about total control over production rather than partnerships with similar service providers, distinguishing it from horizontal integration or other forms of business alliances.
Step-by-step explanation:
Vertical integration involves a company acquiring other companies that include all aspects of a product's lifecycle, from the creation of raw materials through the production process to the delivery of the finished product, rather than forming an alliance with similar service providers. Therefore, the statement that vertical integration involves an alliance of two or more organizations providing similar services is false.
Vertical integration is a growth strategy employed by businesses like those during the late nineteenth century, which were eager to streamline operations and ensure control over the supply chain. This method of growth is distinct from other business strategies such as horizontal integration (where a company acquires competitors in the same industry), the holding company model, and other partnerships or alliances.
Competing corporations might join together in an association for several reasons. They would do so because there is strength in numbers, they often have common issues that may affect an entire industry, and they can all benefit from governmental policies. All of the above are reasons why such corporations might form an association.