Vertical Consolidation: Definition & Examples


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All the following are reasons why a company may vertically consolidate EXCEPT to _____

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1. Vertical consolidation is when a company buys another company in order to perform a service or produce a good on a different part _____

2. If a pizza parlor decided to buy a local farm to source their own ingredients, this would be an example of _____ vertical consolidation.

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About This Quiz & Worksheet

What do you know about vertical consolidation? Find out and review how this process works by using the quiz/worksheet combo.

Quiz & Worksheet Goals

Take the quiz to check your understanding of:

  • The meaning of 'vertical consolidation'
  • Why a company would vertically consolidate
  • Two reasons why a company would decide against vertical consolidation

Skills Practiced

  • Knowledge application - use your knowledge to answer questions about examples of vertical consolidation, such as a pizza place buying a local farm
  • Making connections - use understanding of the concept of vertical consolidation to examine its benefits
  • Reading comprehension - ensure that you draw the most important information from the lesson on vertical consolidation, including why a company might decide for or against it

Additional Learning

To learn more, use the lesson called Vertical Consolidation: Definition & Examples. Other topics you can look at include:

  • How vertical consolidation works
  • Pros and cons of this process
  • Tips when vertically consolidating
  • What a supply chain is