For a Company Concentrating on Final Assembly, Adding Retail and Distribution

question 10

Multiple Choice

For a company concentrating on final assembly, adding retail and distribution into its value chain will require:

• A) backward integration.
• B) forward integration.
• C) taper integration.
• D) related diversification.
• E) unrelated diversification.

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Definitions:

Fixed Costs

Expenses that do not change in total despite changes in the volume of goods or services produced or sold.

Sales

The total revenue earned from selling goods or services over a specific period.

Break-Even

The point where total expenses match total income, leading to neither a profit nor a loss.

Unit Variable Cost

The cost associated with producing one additional unit of product, including materials, labor, and other variable costs.