Final answer:
True. The finished product of one company can become raw materials for another company through upstream and downstream integration in business.
Step-by-step explanation:
True. The finished product of one company can become raw materials for another company. This is known as the concept of upstream and downstream integration in business. Upstream integration refers to a company controlling the supply chain by acquiring or merging with suppliers, while downstream integration refers to a company controlling the distribution channels by acquiring or merging with customers.
For example, in the auto industry, a car manufacturer may acquire a company that produces tires, thus integrating upstream. On the other hand, a car manufacturer may also acquire a dealership network, thus integrating downstream. By doing so, the car manufacturer can ensure a steady supply of raw materials and control the distribution of its vehicles.
Overall, this integration allows companies to improve efficiency, reduce costs, and have more control over their operations.