Which of the Following Is True of Vertical Integration

question 66

Multiple Choice

Which of the following is true of vertical integration?

• A)It leads to the formation of larger firms from smaller ones.
• B)It occurs when a firm adds more layers of management.
• C)It occurs when firms try to buy up their competitors and corner the market.
• D)It has no effect on the internal organization of a firm; it only affects outside markets.
• E)It occurs when a firm buys another firm in a completely unrelated market.

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