Exam IIA-CIA-Part3 All QuestionsBrowse all questions from this exam
Question 189

A restaurant decided to expand its business to include delivery services, rather than relying on third-party food delivery services. Which of the following best describes the restaurant's strategy?

    Correct Answer: B

    The restaurant's decision to expand its business to include delivery services rather than relying on third-party providers is best described as vertical integration. Vertical integration occurs when a company expands its operations into different stages of the same production pathway. In this case, the restaurant is taking control of the delivery process, which was previously handled by an external party, thereby integrating a new stage into its existing operations.

Discussion
KonradKOption: B

B is the right answer!