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Vertical integration most directly helps a firm reduce wh... | QuestionStock

Representative image for question: Vertical integration most directly helps a firm reduce which type of business risk?

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Business

Vertical integration most directly helps a firm reduce which type of business risk?

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Vertical integration most directly helps a firm reduce which type of business risk?

Options:

Interest-rate risk
Supply-chain and transaction risk
Foreign-exchange risk
Market demand risk

Correct answer: Supply-chain and transaction risk

Explanation: Vertical integration (forward or backward) reduces supply-chain and transaction risk by bringing suppliers or distributors in-house, stabilizing input access and lowering dependency on external partners.

Created 2026-03-10T17:32:04.031Z. Updated 2026-03-10T17:32:04.031Z.