Briefly explain the advantages of vertical integration.
What will be an ideal response?
Vertical integration represents an expansion or extension of the firm by integrating preceding or successive productive processes. That is, the firm incorporates more processes toward the original source of raw materials (backward integration) or toward the ultimate consumer (forward integration).
You might also like to view...
161. On July 1 of the current calendar year, Olive Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 of the current year for Olive would include:
A. A credit to a liability and a debit to a prepaid expense for $1,875. B. A debit to a prepaid expense and a credit to Cash for $5,625. C. A debit to a prepaid expense and a credit to an expense for $1,875. D. A debit to an expense and a credit to a prepaid expense for $1,875. E. A debit to an expense and a credit to a prepaid expense for $5,625.
Describe superstores, category killers, and service retailers
What will be an ideal response?
The signature of the person who is enforcing the contract is necessary
Indicate whether the statement is true or false
When discussing cultures, we should avoid making any generalizations
Indicate whether the statement is true or false