Which of the Following Is True of Vertical Integration

Multiple Choice

Which of the following is true of vertical integration?

A) It leads to the formation of larger firms from smaller ones.
B) It occurs when a firm adds more layers of management.
C) It occurs when firms try to buy up their competitors and corner the market.
D) It has no effect on the internal organization of a firm; it only affects outside markets.
E) It occurs when a firm buys another firm in a completely unrelated market.