Movement by a Firm Along Its Own Value Chain in the Direction

question 9

Multiple Choice

Movement by a firm along its own value chain in the direction of sales, service, or warranty operations is termed _________.

• A)horizontal specialization
• B)backward integration
• C)forward integration
• D)horizontal diversification

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Definitions:

Consolidation Process

The procedure of combining and presenting the financial results of several subsidiaries and the parent company as one cohesive financial statement.

Noncontrolling Interest

The portion of equity interest in a subsidiary not held by the parent company.

Downstream Transfers

Transactions involving the transfer of goods or services from a parent company to a subsidiary or among subsidiaries.

Parent and Subsidiary

Describes the relationship between a controlling company (parent) and a controlled company (subsidiary), often through ownership of a significant portion of shares.