Backward integration
A
a vertical integration in which a consumer of raw materials acquires its supplies .
B
a horizontal integration in which a consumer of raw materials acquires its supplies .
C
ensuring that factory is located near a river at its backyard .
D
ensuring that factory is pollution free.
Correct Answer: a vertical integration in which a consumer of raw materials acquires its supplies .
Backward integration is a form of vertical integration in which a company expands its role to fulfill tasks formerly completed by businesses up the supply chain. In other words, backward integration is when a company buys another company that supplies the products or services needed for production.