When the Long-Term Strategy of a Firm Is Based on Growth

question 13

Multiple Choice

When the long-term strategy of a firm is based on growth through the acquisition of one or more similar businesses operating at the same stage of the production-marketing chain,this is called:

• A) Vertical integration
• B) Conglomeration
• C) Horizontal acquisition
• D) Liquidation

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Definitions:

Diseconomies Of Scale

The phenomenon where production costs per unit increase as a firm or production process increases in size, often due to inefficiencies.

Industry Demand Curve

A graphical representation of the total demand for the products or services provided by a specific industry at various prices.

Network Externalities

Benefits or costs that affect a user of a product or service, depending on the number of other users of the same or similar products or services.

NCAA

The National Collegiate Athletic Association, an organization that regulates athletes of many U.S. colleges and universities, setting eligibility criteria and organizing sports competitions.