Which of the Following Is a Danger for Vertically-Specialized Companies

question 6

Multiple Choice

Which of the following is a danger for vertically-specialized companies?

• A)They offer their best product at the lowest price.
• B)They do not allow the firm to focus on making profits.
• C)They have the flexibility to quickly make changes to the business model.
• D)They go out of business if they cannot make enough profits.

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Definitions:

Accounts Receivable

Outstanding balances due to a company from its clients for products or services rendered but still unpaid.

FOB Shipping Point

A shipping term indicating that the buyer assumes responsibility for the goods and the shipping costs from the point of departure.

Freight Costs

Expenses incurred by a company for transporting goods from one place to another.

FOB Destination

A shipping term indicating that the seller pays for transportation of the goods to the buyer's location and owns the goods in transit.