Most Companies Begin with a Centralized Organizational Model and Gradually

Multiple Choice

Most companies begin with a centralized organizational model and gradually move towards a decentralized model. As some companies grow, they acquire other companies in an effort to streamline operations and become more efficient. One result of these acquisitions is integration. Which of the following is an example of vertical integration?

A) A company that manufactures coffee makers acquires their largest competitor in the market, making them the largest coffee maker manufacturers in the United States.
B) A company that manufactures handbags acquires a company that manufactures wallets so that they can expand their customer offerings.
C) A factory that manufactures furniture purchases a furniture marketing and distribution firm.
D) A factory that produces tortilla chips acquires a company that produces salsa so they can begin to offer deals on both products when purchased at the same time.