- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 18. Mergers and Acquisitions
- Subject 1. Definitions and Classifications
CFA Practice Question
A steel manufacturer purchasing an iron ore mining company is an example of ______ and a big grocery store purchasing a local farm is an example of ______.
A. forward integration; forward integration.
B. backward integration, forward integration.
C. backward integration, backward integration.
Explanation: They are both examples of backward integration.
User Contributed Comments 1
User | Comment |
---|---|
mghebrey | backward integration as both are suppliers (down the supply chain) |