The best reason for investing company resources in vertical integration (either forward or backward) is to

A. add materially to a company's technological capabilities, strengthen the company's competitive position, and/or boost its profitability.
B. expand into foreign markets and/or control more of the industry value chain.
C. achieve product differentiation and/or lengthen the company's value chain to include more activities performed in-house and thereby gain a greater ability to reduce internal operating costs.
D. gain a first-mover advantage over rivals in revamping the industry value chain.
E. broaden the firm's product line and/or avoid the need for outsourcing.


Answer: A

Business

You might also like to view...

______ is NOT an antecedent condition of Uncertainty Reduction Theory.

A. Anticipation of future interactions B. Incentive value C. Violation valence D. Deviance

Business

Explain what happens during the concept testing stage of new product development

What will be an ideal response?

Business

An advantage of the corporate form is the separation of ownership and control

Indicate whether the statement is true or false

Business

How is the account Allowance for Uncollectible Accounts presented in the financial statements, and what purpose does this presentation serve?

Business