Question

Vertical integration is defined as one company controlling every phase of the business from raw materials to transportation, manufacturing, and distribution.

a) true
b) false

Answer 1

a) true

Step-by-step explanation:

There are basically two types of integration which are categorized below:

1. Horizontal integration

2. Vertical integration

In horizontal integration, the company acquired another company that is doing the same type of business whereas, in the vertical integration, the company acquires another company supply chain i.e from raw material, manufacturing, distribution, retail and after-sale services.