Horizontal Integration May Be Thought of As

question 4

Multiple Choice

Horizontal integration may be thought of as:

• A) moving into a new unrelated industry.
• B) giving control to suppliers.
• C) gaining control of distributors.
• D) staying inside the industry in which the company currently operates.
• E) combining functional units within the company.

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Definitions:

Negotiating Skills

The abilities and techniques used to effectively persuade or influence others in order to reach a mutual agreement.

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Opportunity Cost

The benefit that is missed or foregone when choosing one alternative over another.

Excess Capacity

A situation where a company's production facilities are capable of producing more than the demand for its products or services.