IndigoLearn

Forums

Vertical Diversification

Sir, does backward vertical diversification means acquiring a new business line ( company) or starting a new business line? In the example you have stated, a car manufacturing company acquires the business of tire manufacturing company. My doubt is whether a car manufacturing company acquires the business line or starts its own tire manufacturing company.


Rithani R.C

Rithani R.C

CA Inter

2K+

04-Mar-21 22:01

24

Answers (1)

Backward integration is when a company buys another company that supplies the products or services needed for production. Car making company acquires company making tyres


sudha reddy

sudha reddy

Moderator

05-Mar-21 19:53

Byte Size Modules
IL Pass percentages
Quote
Tally Free
Hiring
Refer
EMI
Lazypay
Past_Exams