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NEW QUESTION: 1
A milk producer company acquires its own dairy farms to supply milk. The growth strategy adopted by the company is:
A. Horizontal integration.
B. Vertical integration.
C. Concentric diversification.
D. Conglomerate diversification.
Answer: B
Explanation:
Vertical integration occurs when a company becomes its own supplier or distributor. It combines within a firm production, distribution, selling, or other separate economic processes needed to deliver a product or service to a customer.