The Reason That Most Food Processing Firms Do Not Backward

question 29

Multiple Choice

The reason that most food processing firms do not backward integrate into farming is that:

• A)Most food products are supplier through competitive markets where transaction costs are low
• B)Farming and food processing are strategically dissimilar businesses
• C)Both of these
• D)Neither of these

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Definitions:

Technological Efficiency

The optimal use of technology to maximize output or outcomes with minimal waste, effort, or expense.

Workforce

The group of individuals engaged in or available for work, either in a specific region or within a particular industry or organization.

External Monitoring

The process of assessing external conditions or performance metrics to inform decision-making or strategy.

Business Organizations

Entities formed for the purpose of conducting commercial, industrial, or professional activities, structured in various forms such as partnerships, corporations, or sole proprietorships.