Vertical disintegration is said to occur when:
a. a company decides to exit industries either forward or backward in the industry value chain to its core industry.
b. a company takes advantage of another company it does business with after the other company has made an substantial investment in assets to meet the needs of the company.
c. a company decides to acquire its suppliers and distributors.
d. a company uses its capital resources to purchase its competitor.
e. a company decides to sell its business model to another company.
Answer: b. a company takes advantage of another company it does business with after the other company has made an substantial investment in assets to meet the needs of the company.
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