Vertical Integration Can Lead to Legal Prosecution If

question 157

Multiple Choice

Vertical integration can lead to legal prosecution if

• A) there is potential to lessen competition or create a monopoly.
• B) mergers create too much competition.
• C) a corporate vertical system attempts to become a contractual vertical marketing system.
• D) an administered vertical system attempts to become a corporate vertical marketing system.
• E) one member of the channel attempts to take the position of channel captain away from another.

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Definitions:

Capital Gains

The profit earned from the sale of an asset or investment which has increased in value over the holding period.

Shares

Units of ownership in a company or financial asset that represent a portion of the total capital.

Dividend Yield

A company's yearly dividend disbursement compared to its stock price, shown as a financial ratio.

Dividend Income

Income received from owning shares of stock in a company, usually paid out from the company's profits to shareholders at regular intervals.