A fiRm That Produces Beer Decides to Take Over a fiRm

question 41

Multiple Choice

A firm that produces beer decides to take over a firm that makes tyres. This type of growth strategy would be called _____.

• A) diversification
• B) horizontal integration
• C) vertical integration
• D) organic growth

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Definitions:

Limited Partnership

A business structure where one or more partners have limited liability and are not involved in the day-to-day management, juxtaposed with at least one general partner who has unlimited liability.

RULPA

The Revised Uniform Limited Partnership Act, which is a statute that governs limited partnerships in the states that have enacted it.

Limited Partnership Certificate

A document that formally establishes the existence of a limited partnership and outlines its structure and operating principles.

Capital Contribution

The sum of money or assets that the owners or shareholders provide to a company for its use in business operations.