Which of the Following Is an Example of a Vertically-Specialized

question 51

Multiple Choice

Which of the following is an example of a vertically-specialized company?

• A)A company that contracts all of its activities to an external supplier
• B)A company that participate in all stages of the industry value chain
• C)A company that participates in only one activity of the industry value chain
• D)A company that wants to grow by moving forward in the industry value chain

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Definitions:

Command Economies

Economic systems where the government or central authority makes all decisions regarding the production and distribution of goods and services.

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and sell securities, among other activities.

Independent Legal Entity

An organization that has legal rights and obligations independent of its members, such as the ability to enter contracts, sue, and be sued.

Government Bailouts

Financial support provided by a government to a failing business or sector to prevent its collapse and mitigate broader economic fallout.