After Graduating from University, Joan Is Planning to Start Her

question 33

Multiple Choice

After graduating from university, Joan is planning to start her own business.She wants to have her own chain of coffee bars.But that's not all.She plans to import, roast, and package her own brand of coffee.What is this a good example of?

• A)Open systems
• B)Resource dependence
• C)Strategy
• D)Vertical integration
• E)Establishing legitimacy

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Definitions:

Uncertainty

A situation characterized by the lack of predictability or definite knowledge about an outcome or result.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Balance Sheet Hedge

A financial strategy used to reduce the risk of currency fluctuations affecting the value of assets and liabilities reported in a company's balance sheet.

Exchange Rate Fluctuations

Variations in the value of one currency relative to another, affecting international trade and investments.