SparklingLeaves Is One of the Major Suppliers of Automobile Tools

question 42

Multiple Choice

SparklingLeaves is one of the major suppliers of automobile tools to StanMotors, a leading automobile company. Many of the tools are customized to meet the specific needs of StanMotors and hence have little other value. In return, StanMotors has agreed to make SparklingLeaves its sole supplier of automobile equipment for a period of 15 years. This scenario illustrates:

• A) horizontal integration.
• B) credible commitment.
• C) competitive bidding.
• D) vertical integration.
• E) parallel sourcing.

---

Definitions:

Control Group

A control group is a group in an experiment that does not receive the experimental treatment, allowing researchers to measure the effect of the treatment by comparison.

Extraneous Variables

Factors other than the independent variable that can affect the outcome of an experiment and need to be controlled.

Experimental Group

The group in an experiment that receives the treatment or intervention under study to investigate its effects.

Independent Variables

Variables in an experiment that are manipulated to test their effects on dependent variables.