A Firm That Backward Vertically Integrates

question 32

Multiple Choice

A firm that backward vertically integrates

• A)moves downstream in the production process.
• B)requires that the production process be relatively simple.
• C)has to merge with another firm.
• D)may be producing its own inputs.

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Definitions:

Banking System

The network of institutions, laws, regulations, and practices that deliver financial services including deposit, loan, and payment services.

Drawer

The party that writes and signs a cheque, instructing a bank to pay a specific amount of money to the bearer or a named party.

Drawee Bank

The financial institution upon which a check is drawn and is responsible for paying the amount indicated when properly presented.

Stop Payment

An order given by an account holder to their bank to not pay out or honor a check or payment that has previously been issued from their account.