Backward Integration Is Effective in All of These Except

question 38

Multiple Choice

Backward integration is effective in all of these except

• A) when an organization competes in an industry that is growing rapidly.
• B) when an organization has both capital and human resources to manage the new business of supplying its own raw materials.
• C) when an organization needs to acquire a needed resource quickly.
• D) when the advantage of stable prices are not important.
• E) when present suppliers have high profit margins.

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Definitions:

Reinforcement Value

The degree to which the outcome of a behavior increases the likelihood of the behavior's recurrence.

Behavior Potential

The likelihood of a particular behavior occurring in the presence of specific environmental conditions.

Observational Learning

Learning that results from watching or hearing about a person modeling the behavior.

Social Encouragement

The act of motivating or inspiring individuals through social interaction and support.