Which of the Following Statements Best Describes Forward Integration

question 16

Multiple Choice

Which of the following statements best describes forward integration?

• A)A firm purchases its suppliers in order to make a product itself rather than buying it from another firm.
• B)A firm imposes extra costs on customers for changing brands.
• C)A firm goes into the business of its former buyers, rather than continuing to sell products to them.
• D)A firm joins an alliance with its competitor to share materials.

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Definitions:

Statute of Frauds

A legal concept that requires certain types of contracts to be written and signed to be enforceable.

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by the party against whom enforcement is sought, to be legally enforceable.

Interest in Land

A legal right or claim to use, control, or dispose of real property.

Real Property

Land and anything permanently attached to the land, such as buildings, houses, stationary mobile homes, fences, and trees.