Which of the Following Statements Regarding Vertical Integration Is FALSE

question 38

Multiple Choice

Which of the following statements regarding vertical integration is FALSE?

• A)Vertically integrated companies may be large,but unlike other large corporations,since they remain focused in one industry,they are easy to run.
• B)A company might not be happy with how its products are being distributed,so it might decide to take control of its distribution channels.
• C)A company might conclude that it can enhance its product if it has direct control of the inputs required to make the product.
• D)The principal benefit of vertical integration is coordination.By putting two companies under central control,management can ensure that both companies work toward a common goal.

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Definitions:

Motivations

The reasons or drivers behind an individual's actions, desires, or needs.

Perceptual Maps

A visual tool used in marketing to display the perceptions of customers or potential customers regarding specific brands, products, or services.

Self-Concepts

Refers to the image or understanding a person has of themselves, shaped by personal experiences, social interactions, and perceptions.

Benefit Perceptions

The value or advantage customers believe they will receive from a product or service, which significantly influences their buying behavior.