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Vertical integration is based on a company entering only those industries that: a. add value to its core products. b. are not in any way related to the company's current business operation. c. are involved in sourcing raw materials. d. are involved in the distribution of products. e. are considered as potential competitors.

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CadenS
c. Are involved in sourcing raw materials. Vertical integration is when the company controls every step down to the making of the product, in order to cut costs they used mines and get coal to run the trains and everything is owned by this company to reduce a tax or loss of money