In Which of the Following Is a Firm Most Likely

question 41

Multiple Choice

In which of the following is a firm most likely to lose direct control over value-creation activities?

• A) Merger
• B) Outsourcing
• C) Vertical integration
• D) Strategic alliance
• E) Acquisition

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Definitions:

Central Bank

The principal monetary authority of a country, which manages the country's currency, money supply, and interest rates.

Flexible Exchange Rates

Exchange rates determined by the foreign exchange market, allowing the value of a currency to fluctuate according to supply and demand.

Bretton Woods Agreement

A 1944 agreement that established a new international monetary system, creating institutions like the International Monetary Fund (IMF) and the World Bank to ensure financial stability and promote economic cooperation.

Gold Standard

An economic setup where the worth of paper money or a country's currency is directly connected to the value of gold.