If Digipics Were to Agree to Spend a Significant Amount

question 72

Multiple Choice

If Digipics were to agree to spend a significant amount of money to establish a new assembly line for a large client, PicPro, that has unique needs that would make this assembly line largely useless for any other customer, the funds Digipics spent in establishing this line would be an example of

• A) forward vertical integration.
• B) backward vertical integration.
• C) a transaction-specific investment.
• D) opportunism.

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Definitions:

Domestic Servants

Individuals employed within a home to perform household chores and duties.

Bookkeeping

The process of recording financial transactions and maintaining financial records for a business, ensuring accuracy in accounting for income, expenses, assets, and liabilities.

African Methodist Episcopal Church

The first independent Protestant denomination to be founded by black people, established in Philadelphia in 1816.

Richard Allen

A minister, educator, and writer who founded the African Methodist Episcopal Church in 1816, the first independent black denomination in the United States.