Musa obtains wool from his sheep; spins and transform it into cloth which he sells to consumers, this is a form of?

A. Vertical integration
B. Horizontal integration
C. Forward Integration
D. Background integration

Correct Answer:

Option A – Vertical integration

Explanation

This integration involves the coming of two or more firms at different production stage in the same industry. The production of wool is one stage in the production of cloths while spinning and transformation of the wool into clothes is another stage in the production of clothes