When an Organization Remains with Its Core Industry, This Is

question 48

Multiple Choice

When an organization remains with its core industry, this is an example of a ________ strategy.

• A) concentration
• B) forward integration
• C) backward integration
• D) horizontal integration
• E) related diversification

---

Definitions:

Flow-Through Entity

A business entity where income flows directly to investors or owners, avoiding corporate income tax.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Sole Proprietorship

A sole proprietorship is a type of unincorporated business owned and operated by one individual, with no distinction between the business and the owner for legal and tax purposes.

Partnership

A legal business relationship between two or more individuals who share management and profits or losses of the business.