The Primary Disadvantage of Vertical Integration Is

question 38

Multiple Choice

The primary disadvantage of vertical integration is:

• A)increased bureaucratic costs.
• B)increased number of opportunistic suppliers.
• C)decreased product quality.
• D)loss of control over inputs.

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Definitions:

Business Capital Investment

Business capital investment involves the allocation of financial resources by businesses into long-term assets or projects expected to generate future returns or growth.

U.S. Corporations

are business entities that are registered and operate in the United States, subject to U.S. laws, and often characterized by their complex structure, governance, and operations.

Small Businesses

Enterprises that are independently owned and operated, characterized by fewer employees and less revenue than larger corporations.

Managerial Functions

The primary roles of managers, which typically include planning, organizing, leading, and controlling within an organization.