Vertical Integration Is a Strategy That Is Most Likely to Be

question 51

Multiple Choice

Vertical integration is a strategy that is most likely to be used when an organization employs ______________.

• A)long- linked technology
• B)intensive technology
• C)small- batch technology
• D)mediating technology

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Definitions:

Creditor

An entity or person to whom money is owed by a debtor for goods supplied or loans given.

Discount Rate

The discount rate is the interest rate used in calculating the present value of future cash flows, often reflecting the risk and time value of money in investment appraisals.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, typically represented as an annual percentage.

Operating Expense

Expenses incurred in the normal operation of a business, excluding the cost of goods sold, such as rent, salaries, and utilities.