Why did business leaders begin the practice of vertical integration?(1 point)
Responses
Large corporations could control the cycle of a product from creation to sale.
Large corporations could control the cycle of a product from creation to sale.
Small companies could grow so that they could compete with the larger companies.
Small companies could grow so that they could compete with the larger companies.
Factory workers could start in low positions and work their way up to management.
Factory workers could start in low positions and work their way up to management.
Big companies could grow by merging with other companies or acquiring them
Big companies could grow by merging with other companies or acquiring them
Business leaders began the practice of vertical integration because large corporations could control the cycle of a product from creation to sale. Additionally, small companies could grow and compete with larger companies. Moreover, big companies could grow by merging with or acquiring other companies. However, the practice of vertical integration did not directly relate to factory workers starting in low positions and working their way up to management.
(1 point) The correct answer is: Big companies could grow by merging with other companies or acquiring them.
Explanation: Business leaders began the practice of vertical integration primarily as a strategy for growth and market control. Vertical integration involves a company expanding its operations into different stages of the supply chain, essentially allowing it to control the entire production and distribution process of a product. By merging with or acquiring other companies, large corporations were able to consolidate their operations, reduce costs, and increase efficiency. This practice allowed them to eliminate middlemen and gain greater control over the quality, pricing, and availability of their products. Ultimately, vertical integration enabled big companies to gain a dominant position in the market and maintain a competitive advantage.