To Expand the Number of Its Retail Outlets in the Washington

question 219

Multiple Choice

To expand the number of its retail outlets in the Washington, D.C. area, Whole Foods bought out a small chain of organic food stores in northern Virginia. This type of integration is called

• A) vertical.
• B) retail.
• C) horizontal.
• D) backward.
• E) forward.

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Definitions:

Income Tax Expense

The expense reported on the income statement that represents the amount of income tax a company owes to governmental authorities.

Tax Rate

The percentage at which an individual or corporation is taxed.

Lease Asset

An asset that is acquired under a lease agreement wherein the lessee has the right to use the asset for a specified period.

Lease Liability

An obligation representing future lease payments for the use of assets, recognized on the balance sheet by lessees under new accounting standards.