If Happy Cows, a dairy manufacturer, sells its sour cream division, this is an example of ________.
A) divestiture
B) forward integration
C) backward integration
D) outsourcing
A) divestiture
You might also like to view...
If the price of oil, a close substitute for coal, increases then the
A. supply curve for coal will shift to the right. B. demand curve for coal will shift to the right. C. equilibrium price and quantity of coal will not change. D. demand curve for coal will shift to the left. E. supply curve of coal will shift to the left.
An open-market purchase of foreign bonds to increase a central bank's international reserves:
A. increases the central bank's liabilities and decreases its assets. B. increases the central bank's liabilities and assets. C. decreases the central bank's assets and liabilities. D. increases the central bank's assets but decreases its liabilities.
A government currently uses price controls to hold down the price of zinc, an exhaustible resource. If price controls are removed,
A. production of zinc will probably fall. B. zinc mines with high marginal cost of production will probably stop producing. C. consumers of zinc will probably want substitutes for zinc. D. income will probably be redistributed from zinc producers to zinc consumers.
After a particular loan has been paid off, neither the borrower nor the lender has lost purchasing power. Therefore, it must be true that actual inflation was
A. greater than expected inflation. B. equal to expected inflation. C. less than expected inflation. D. greater than the nominal rate of interest.