Why Is Market Demand Uncertainty a Factor to Consider When

question 57

Multiple Choice

Why is market demand uncertainty a factor to consider when deciding whether to opt for vertical integration?

• A)The greater the unpredictability of demand, the greater the need to make suppliers suffer the consequences rather than the firm
• B)The greater the unpredictability of demand, the greater the consequences of compounded risk through vertical integration
• C)The more turbulent the demand, the greater the control advantage of vertical integration
• D)The more uncertain the market demand, the greater the bargaining power of the firm in the external market

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