Adam's Boss Tells Him That Their Company Is Pursuing a Strategy

question 52

Multiple Choice

Adam's boss tells him that their company is pursuing a strategy of horizontal integration. Which of the following should Adam expect?

• A) His company will acquire one of its suppliers.
• B) His company will reorganize into fewer business units.
• C) His company will begin to distribute its own products.
• D) His company will buy one of its rivals
• E) His company will centralize all of its support functions.

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Definitions:

Inflationary Gaps

Situations where the demand for goods and services exceeds the production capacity of the economy, leading to an upsurge in price levels.

Classical Economists

A group of economists in the 18th and 19th centuries who believed in free markets, the self-regulating nature of economies, and the importance of competition.

Inflation

A measure of the rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Keynes

Refers to John Maynard Keynes, a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.