Vegetative reproduction takes place in yeast by budding. This process involves the formation of a small outgrowth or bud on the parent yeast cell. The bud gradually enlarges as it receives nutrients from the parent cell until it reaches a sufficient size to detach and become a new daughter cell. Budding is a form of asexual reproduction in yeast, allowing for rapid multiplication of the population under favorable conditions. Unlike sexual reproduction, which involves the formation and fusion of gametes, budding is a simple and efficient means of propagation in yeast. It ensures genetic continuity between parent and offspring cells, maintaining the characteristics of the original strain. Budding occurs regularly in yeast populations, contributing to their ability to colonize various environments and adapt to changing conditions, making option A the correct answer.