Question

When Apple, Inc. opened retail stores to sell its computers and iPods, this was an example of:

A) forward vertical integration
B) backward vertical integration
C) forward horizontal integration
D) backward horizontal integration

Answer 1

The correct answer is letter "A": forward vertical integration.

Step-by-step explanation:

Forward integration happens when a business takes over functions that were originally performed by its partners in the supply chain. Forward integration can be horizontal and vertical. Forward horizontal integration takes place when one company takes over another at the same level of the supply chain. In forward vertical integration, a firm takes charge of the businesses located farther down the supply chain.