Use the Following to Answer Questions

question 156

Multiple Choice

Use the following to answer questions .
Exhibit: Stages of Production of Toy Model Airplanes

-(Exhibit: Stages of Production of Toy Model Airplanes) The value added by the extraction of the crude oil is _____.

• A) $2
• B) $3
• C) $4
• D) $5

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Definitions:

Horizontal Integration

A strategy where a company acquires or merges with other companies at the same stage of production in its industry, seeking to increase market share.

Market Diversification

The strategy of entering into new markets or creating new products to reduce reliance on a single market or product line.

Synergy

The combined effect of two or more individuals, entities, or factors that is greater than the sum of their separate effects.

Indemnity

A contractual obligation of one party to compensate the loss incurred by the other party due to the acts of the indemnitor or other specified causes.