Marble Cakes Inc

question 39

Multiple Choice

Marble Cakes Inc., after serving a good number of customers in its home state, has set up business in three other states with additional menu options of cupcakes, donuts, and coffees to generate new customers. This has enabled the company to successfully maintain its corporate strategy. Marble Cakes Inc. is engaging in _________.

• A)vertical integration
• B)horizontal specialization
• C)vertical specialization
• D)horizontal diversification

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Definitions:

Cumulative Voting

Cumulative voting is a method used in corporate elections, allowing shareholders to allocate their votes in any manner they choose among the candidates, offering minority shareholders a better chance of representation.

Minority Shareholders

Shareholders who own less than 50% of a company's shares and therefore, have less influence over decision making.

Board Of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Proxy

The right to act for another on a specific issue. In finance the right to cast another’s vote in the election of corporate directors. Incumbent directors routinely solicit stockholders’ proxies for reelection.