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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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Colene
15 days ago
Surprised they went for the mining company!
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Lemuel
20 days ago
I thought it was forward integration?
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Jade
26 days ago
That's definitely backward vertical integration!
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Margurite
1 month ago
Definitely not forward vertical integration.
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Andree
1 month ago
Surprised they went for the mining company!
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Felton
1 month ago
Wait, isn't it just backward integration?
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Cletus
2 months ago
I think it's forward horizontal integration, though.
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Daniel
2 months ago
That's backward vertical integration for sure!
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Adrianna
2 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
2 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
2 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
2 months ago
I think this might be backward vertical integration since the manufacturer is acquiring a supplier.
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