Research Suggests That __________ Has Decreased While __________ Has Increased

question 6

Multiple Choice

Research suggests that __________ has decreased while __________ has increased, possibly due to the restructuring that continued in the 1990s through the early twenty-first century.

• A) forward vertical integration; backward vertical integration
• B) backward vertical integration; forward vertical integration
• C) related diversification; unrelated diversification
• D) unrelated diversification; related diversification

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Definitions:

Homemade Leverage

A strategy where investors adjust the leverage or risk of their portfolio through borrowing or investing their own money, rather than relying on the company to do so.

Direct Bankruptcy Costs

These are the costs associated directly with the bankruptcy process, including legal fees, accounting fees, and other administrative expenses for processing a bankruptcy filing.

Legal and Administrative Expenses

Costs associated with the legal operation of a business and general administrative tasks, including legal fees, licensing, and managerial salaries.

Bankruptcy

is a legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.