The Essence of the ________ to Vertical Integration Is That

question 58

Multiple Choice

The essence of the ________ to vertical integration is that if a firm possesses valuable, rare, and costly-to-imitate resources in a business activity, it should vertically integrate into that activity otherwise it should not vertically integrate into that activity.

• A) flexibility-based explanation
• B) opportunism-based explanation
• C) firm capability explanation
• D) opportunity-based explanation

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Definitions:

Competitive

A trait or situation characterized by rivalry where individuals or groups strive to outperform each other to achieve a goal.

Hostility

Feelings of anger and antagonism towards someone or something, often displayed through aggressive behavior or attitudes.

Defence Mechanism

Mental tactics employed by people to deal with the real world and preserve their sense of self.

Overcompensation

A defense mechanism where individuals attempt to cover up feelings of inferiority by exaggerating desirable traits or behaviors.