Is When a Firm Performs More Than One Set of Activities

question 31

Multiple Choice

is when a firm performs more than one set of activities in the channel.

• A) Horizontal integration
• B) Channel diversification
• C) Vertical integration
• D) Vertical development
• E) Distribution channel

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Definitions:

Equivalent Annual Annuity

The constant annual cash flow for a certain period of time that has the same present value as a series of different cash flows.

Mutually Exclusive

Refers to scenarios where the acceptance of one alternative means the other cannot be chosen.

NPV

NPV (Net Present Value) is a calculation used to assess the profitability of a project or investment by summing the present values of all cash inflows and outflows associated with it.

Replacement Chain Method

A decision analysis for evaluating the replacement of assets, considering the optimal time to replace each asset.