Which of the Following Is an Example of FORWARD Integration

question 45

Multiple Choice

Which of the following is an example of FORWARD integration?

• A) a group of farmers decision to form a cooperative to build and operate a roadside market to sell fresh produce.
• B) the decision by the owner of a sawmill to buy a large woodlot adjacent to the mill.
• C) an auto manufacturer deciding to purchase interior door panels from suppliers rather than manufacturer them internally.
• D) a food processing company's decision to enter into long term supply contracts with farmers.

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Definitions:

Compounded Annually

Definition: Refers to the calculation and addition of interest to the principal sum of a loan or deposit once every year.

Debt

money that is owed or due to be paid to someone else, often as a result of borrowing funds.

Investment Account

An account held at a financial institution that is used for investing in securities, such as stocks, bonds, and mutual funds.

Withdraw

The process of withdrawing money from a bank account or investment.