In Which of the Following Cases Are Bureaucratic Costs Likely

question 67

Multiple Choice

In which of the following cases are bureaucratic costs likely to be lowest?

• A) A vertically integrated company with five divisions that pursues full integration
• B) A company with five divisions that pursues related diversification based on economies of scope
• C) A company with five divisions that pursues related diversification based on transferring competencies
• D) A company with five divisions that pursues unrelated diversification based on acquisitions and restructuring
• E) A company with twenty divisions that pursues taper integration

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Definitions:

Lemon Laws

Statutes that provide remedies to consumers for products, typically vehicles, that repeatedly fail to meet standards of quality and performance.

Defective Parts

Components or elements of a product that are faulty, flawed, or do not meet specified standards of quality.

Punitive Damages

Monetary compensation awarded to a plaintiff that exceeds simple compensation and is intended to punish the defendant for egregious behavior.

Special UCC Exception

A unique or specific deviation from the general rules established under the Uniform Commercial Code, which governs commercial transactions in the United States.