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CIPS L6M9 Exam - Topic 3 Question 19 Discussion

A jewelry manufacturer has recently acquired the mining company that supplies the precious metals used in its jewelry production.What is this an example of?
D) Backward vertical integration
A) Forward horizontal integration
B) Backward horizontal integration
C) Forward vertical integration

CIPS L6M9 Exam - Topic 3 Question 19 Discussion

Actual exam question for CIPS's L6M9 exam
Question #: 19
Topic #: 3
[All L6M9 Questions]

A jewelry manufacturer has recently acquired the mining company that supplies the precious metals used in its jewelry production.

What is this an example of?

Show Suggested Answer Hide Answer
Suggested Answer: D

Backward vertical integration occurs when a company acquires a supplier or producer that is further upstream in the supply chain. In contrast, forward vertical integration happens when a company buys a retailer or distributor further downstream.

Note: Forward horizontal and backward horizontal integration do not exist---these are trick options. (See LO 1.2, p.42)


by Avery at Mar 07, 2026, 05:47 PM

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Sommer
11 hours ago
No, it’s D) Backward vertical integration. They’re taking over their supplier.
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Veronika
6 days ago
I think it's A) Forward horizontal integration. They’re expanding their control.
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Stephanie
11 days ago
Not sure this will actually benefit them in the long run.
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Gerald
16 days ago
Seems like a smart move for control over resources.
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Colene
2 months ago
Surprised they went for the mining company!
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Lemuel
2 months ago
I thought it was forward integration?
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Jade
2 months ago
That's definitely backward vertical integration!
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Margurite
3 months ago
Definitely not forward vertical integration.
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Andree
3 months ago
Surprised they went for the mining company!
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Felton
3 months ago
Wait, isn't it just backward integration?
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Cletus
3 months ago
I think it's forward horizontal integration, though.
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Daniel
3 months ago
That's backward vertical integration for sure!
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Adrianna
3 months ago
I’m confused about the terms, but I feel like this is definitely about vertical integration since it involves the supply chain.
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William
4 months ago
I practiced a similar question where a company bought its supplier, and I think that was called backward vertical integration.
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Jutta
4 months ago
I’m not entirely sure, but I remember something about forward and backward integration. This feels like it could be forward horizontal integration too, but that doesn't seem right.
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Terrilyn
4 months ago
I think this might be backward vertical integration since the manufacturer is acquiring a supplier.
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