Which of the following statements explains the difference between forward integration and backward integration?

Which of the following statements explains the difference between forward integration and backward integration?



a. A manufacturer takes up the product's distribution responsibilities in forward integration, while a manufacturer controls raw material inputs in backward integration.

b. Forward integration deals with tangible goods and perishable services, while back ward integration deals with perishable goods and intangible services.

c. Forward integration deals with the internal or micro-environmental factors of a firm, while backward integration deals with the external or macro-environmental factors of a firm.

d. The number of intermediaries in a forward integration process is greater than the number of intermediaries in a backward integration process.



Answer: A


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