Which of the following statements regarding vertical integration is FALSE?
A) Vertically integrated companies may be large, but unlike other large corporations, since they remain focused in one industry they are easy to run.
B) A company might not be happy with how its products are being distributed, so it might decide to take control of its distribution channels.
C) A company might conclude that it can enhance its product if it has direct control of the inputs required to make the product.
D) The principal benefit of vertical integration is coordination. By putting two companies under central control, management can ensure that both companies work toward a common goal.
Answer: A
You might also like to view...
The first step involved in conducting bivariate analysis is the development of a scatter diagram
Indicate whether the statement is true or false
Is having a positive self-concept really all that important?
What will be an ideal response?
Which of the following is sometimes called a jumping control because it instructs programs to "jump to" some specific area of the code?
A. GO TO statement B. GOTO statement C. GO_TO statement D. JUMP statement
Adoption of a low-cost strategy may lead to a decrease in which of the following?
a. Volume b. Flexibility c. Customer complaints d. Warranty claims