Firms Sometimes Engage in Vertical Integration in Order to Increase

question 38

True/False

Firms sometimes engage in vertical integration in order to increase market power and flexibility.

---

Definitions:

Reversing Entry

An accounting method used to reverse the impact of certain journal entries made in the previous accounting period for the sake of simplicity in future record keeping.

Interest Accrued

The accumulated interest on a loan or bond that has not yet been paid to the lender.

Proceeds of a Note

The total amount of money generated or to be paid out from a promissory note or financial instrument.

Reversing Entry

An accounting entry that is made at the beginning of an accounting period to reverse or cancel out a journal entry made at the end of the previous accounting period.