Vermilion Inc

question 39

Multiple Choice

Vermilion Inc. is a multinational conglomerate. It has three subdivisions that deal with apparel, consumer electronics, and healthcare products. Each subdivision has the authority to make its own business decisions. This scenario illustrates _____.

• A) licensing
• B) vertical structuring
• C) franchising
• D) horizontal structuring

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Definitions:

Quota

A trade limitation enforced by the government that restricts the quantity or financial value of products that may be exported or imported within a certain timeframe.

Revenues

Revenues represent the total income generated by a business from its primary activities, such as sales of goods or services, before any costs or expenses are deducted.

Government

The organization, or group of individuals, recognized by the populace as having the authority to govern a political state, including creating and enforcing laws.

Tariffs

Tariffs are taxes imposed by a government on imported goods and services, often used to protect domestic industries from foreign competition.