Backward Integration Occurs When a Company

question 91

Multiple Choice

Backward integration occurs when a company:

• A) produces its own inputs.
• B) owns its own source of distribution of outputs.
• C) is concentrated in a single industry.
• D) is divesting unrelated businesses.

Recognize the significance of conveying business weaknesses and strategies to overcome them.

Differentiate between the Business Model Canvas and more traditional business planning documents.

Recognize the value of planning and forecasting for businesses of all sizes.

Understand the role of planning in identifying the need, vision, and direction for a business.

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Definitions:

Paid-In Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.

Fair Value

An estimate of the market value of an asset or liability based on current market prices or valuations.

Common Stock

A type of equity security that represents ownership in a corporation, usually with voting rights and potential for dividends.

Common Stock

Equity ownership in a corporation, with voting rights and eligibility to receive dividends.