Which of the Following Is NOT a Limitation Directly Relating

question 54

Multiple Choice

Which of the following is NOT a limitation directly relating to vertical integration?

• A)bureaucratic costs
• B)the loss of flexibility through investment in specific technologies
• C)capacity balance and coordination problems from changes in demand
• D)imitation of core technology by potential competitors

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Definitions:

Merger

The combination of two or more companies into a single entity, usually to achieve synergies or improve competitive positioning.

Consolidation

The process of combining assets, liabilities, and other financial items of two or more entities into one. In financial accounting, it refers to the aggregation of financial statements of a group company as consolidated accounts.

Combining Firms

The process of merging two or more companies into one entity, typically to achieve synergies or strategic objectives.

Acquiring Firm

A company that purchases a majority interest in another company to take control of it.