Which of the Following Statements Best Describes the Term Backward

question 24

Multiple Choice

Which of the following statements best describes the term backward integration?

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

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Definitions:

Pay Installments

To make payments for a good or service over a period of time in portions, rather than paying the full amount upfront.

Severance

An owner’s removal of chattel that he has affixed; separation or division of joint ownership; action by one of the co-owners that is inconsistent with joint tenancy.

Joint Ownership

Shared ownership of property by two or more parties where all owners have equal rights and obligations regarding the property.

Right Of Way

A type of easement that allows the crossing of another’s land.