1 answer

When a company is involved in more than one activity in the entire value chain, it...

Question:

When a company is involved in more than one activity in the entire value chain, it is
a. Vertically integrated
b. Horizontally integrated
c. Vertically and horizontally integrated
d. Not integrated
Select one:
a. Horizontally integrated
b. Not integrated
c. Vertically integrated
d. Vertically and horizontally integrated

Answers

Correct answer is option Vertically Integerated.

Explanation:

Under Vertically Integeration the company adds new products/services complementary to existing products/services whereas under Horizontal Integeration, the company increases the production of its existing products/services.

Hence, when it is said that company is involved in more than one activity in the entire value chain it means that they are increasing their value chain not only in the existing product line but diversifying it by expanding to new products/services.

Hence, Vertically integeration is the correct answer.

.

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