Which of the Following Is True of Vertical Integration

Multiple Choice

Which of the following is true of vertical integration?

A) It occurs when firms internalize certain stages of production that were previously contracted to suppliers.
B) It occurs when a firm adds more layers of management to increase transparency in the accounting system.
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.
E) It occurs when a firm buys another firm in a completely unrelated market.