Which of the Following Is the Best Example of Forward

question 66

Multiple Choice

Which of the following is the best example of forward vertical integration?

• A) a car dealership opening up its own automobile manufacturing plant
• B) a car company opening its own dealerships to sell its products directly to customers
• C) a car company opening its own chain of video rental stores
• D) a car company opening a plant to product motorcycles

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Definitions:

Option Contract

A contract which grants the holder the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.

Unilateral Contract

is a type of contract where only one party makes a promise or undertakes a performance obligation in exchange for an act by the other party, creating a binding agreement once the act is performed.

Revocable Offer

An offer that can be withdrawn by the offering party before it is accepted by the offeree, typically within a certain time frame.

Unilateral Offer

An offer made by one party where acceptance is performed through an action rather than a promise of action.