Musa obtains wool from his sheep, spins and transforms it into cloth which he sells to consumers. This is a form of

Assessment: JAMB UTME - Commerce - 1999 Subject: Commerce

Question 1 Report

Musa obtains wool from his sheep, spins and transforms it into cloth which he sells to consumers. This is a form of
Answer Details
Musa's business model involves taking raw materials, such as wool from his sheep, and processing them into a finished product, such as cloth, which he then sells to consumers. This type of business model is known as vertical integration, which involves controlling different stages of the supply chain, from raw materials to finished goods. In this case, Musa is integrating backward, as he is bringing production of raw materials in-house by raising his own sheep and obtaining wool from them.

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