Which of the Following Is an Example of Vertical Integration

question 137

Multiple Choice

Which of the following is an example of vertical integration?

• A)A newsprint manufacturer owns a forestry company.
• B)Zeke is on the boards of directors of an oil exploration company and a gasoline retailer.
• C)A steel company removes two levels from its organizational hierarchy.
• D)An automobile company introduces computer aided design.
• E)Two banks agree to merge.

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Definitions:

Private Market-clearing

The process by which supply and demand balance out at a price where the quantity supplied equals the quantity demanded in a private marketplace, without excess surplus or shortage.

Emissions Taxes

Taxes levied on the emission of pollutants, aimed at reducing environmental harm by incorporating the cost of pollution into the market price.

Tradable Emissions Permits

A regulatory system that allows companies to buy or sell allowances for a given amount of emissions, encouraging reduction in total emissions in a cost-effective manner.

Environmental Standards

Regulations and criteria set by authorities regarding the levels of pollutants that can be present in the environment or released over a certain time frame.