Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

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

Limited Time Offer

25%

Off

Get Premium L6M9 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Rossana
4 days ago
I feel it's D) Backward vertical integration. They’re securing their resources directly.
upvoted 0 times
...
Derick
9 days ago
I lean towards C) Forward vertical integration. They’re expanding their production chain.
upvoted 0 times
...
Tyra
14 days ago
I disagree, it's B) Backward horizontal integration. They control the supply now.
upvoted 0 times
...
Lisha
19 days ago
I think it's A) Forward horizontal integration. Makes sense!
upvoted 0 times
...
Mee
25 days ago
I’m confused. Isn’t it just about getting more resources?
upvoted 0 times
...
Emile
30 days ago
I agree with Desire. It’s about controlling the supply chain.
upvoted 0 times
...
Desire
1 month ago
No, it’s D) Backward vertical integration. They own the source now.
upvoted 0 times
...
Reena
1 month ago
I think it's A) Forward horizontal integration. They’re expanding their control.
upvoted 0 times
...
Tracey
2 months ago
Yeah, I feel like it’s about controlling the supply chain. Definitely D.
upvoted 0 times
...
Brittney
2 months ago
I agree with Sommer. It makes sense to secure resources.
upvoted 0 times
...
Sommer
2 months ago
No, it’s D) Backward vertical integration. They’re taking over their supplier.
upvoted 0 times
...
Veronika
2 months ago
I think it's A) Forward horizontal integration. They’re expanding their control.
upvoted 0 times
...
Stephanie
2 months ago
Not sure this will actually benefit them in the long run.
upvoted 0 times
...
Gerald
2 months ago
Seems like a smart move for control over resources.
upvoted 0 times
...
Colene
4 months ago
Surprised they went for the mining company!
upvoted 0 times
...
Lemuel
4 months ago
I thought it was forward integration?
upvoted 0 times
...
Jade
4 months ago
That's definitely backward vertical integration!
upvoted 0 times
...
Margurite
4 months ago
Definitely not forward vertical integration.
upvoted 0 times
...
Andree
5 months ago
Surprised they went for the mining company!
upvoted 0 times
...
Felton
5 months ago
Wait, isn't it just backward integration?
upvoted 0 times
...
Cletus
5 months ago
I think it's forward horizontal integration, though.
upvoted 0 times
...
Daniel
5 months ago
That's backward vertical integration for sure!
upvoted 0 times
...
Adrianna
5 months ago
I’m confused about the terms, but I feel like this is definitely about vertical integration since it involves the supply chain.
upvoted 0 times
...
William
5 months ago
I practiced a similar question where a company bought its supplier, and I think that was called backward vertical integration.
upvoted 0 times
...
Jutta
6 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.
upvoted 0 times
...
Terrilyn
6 months ago
I think this might be backward vertical integration since the manufacturer is acquiring a supplier.
upvoted 0 times
...

Save Cancel