A firm that decides to stop purchasing components from suppliers and start producing them in-house is pursuing backward vertical integration.
Answer the following statement true (T) or false (F)
True
Moving ownership of activities upstream to the originating (inputs) point of the value chain is known as backward vertical integration.
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Defining a relationship as which of the following precipitates supportive, nonthreatening behaviors and the exchange of more honest and forthright messages?
A. cooperative B. competitive C. authoritarian D. comingled
The percentage-of-sales method leads to a budget set by market opportunities rather than by the availability of funds
Indicate whether the statement is true or false
A regional restaurant chain spends $90,000 for a local television advertising campaign that delivers $450,000 in incremental revenue
If the incremental contribution margin based on the incremental revenue for this campaign is 75%, then how much would the program return for each additional marketing dollar invested? A) $2.70 B) $3.00 C) $3.75 D) $5.00 E) $7.50
The objective of transfer pricing is to encourage each division manager to transfer goods and services between divisions if overall company income can be increased by doing so
Indicate whether the statement is true or false