Backward Vertical Integration and Forward Vertical Integration Can Be Respectively

question 26

Multiple Choice

Backward vertical integration and forward vertical integration can be respectively defined as a situation where:

• A)A firm takes over activities previously undertaken by its customers
• B)A firm takes over activities producing some of its own main inputs, and takes over activities previously undertaken by some of its significant customers
• C)A firm takes control of one of its rivals, and a firm takes control of one of its suppliers
• D)A firm takes control of most of its suppliers, and of a few of its customers

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Definitions:

Publicly Held Corporations

Companies whose shares are traded on public stock exchanges, allowing for ownership by the general public.

Federal Legislation

Laws enacted by the national government of a country, in this case, the United States, which apply to all states and citizens.

Cost-Benefit Analysis

A systematic approach to estimate the strengths and weaknesses of alternatives; it is used to determine options that provide the best approach to achieve benefits while preserving savings.

Social Theory

A framework or set of ideas that aims to explain how societies function, change, and develop.