________ Is a Method of Hedging Wherein a Firm and Its

question 70

Multiple Choice

________ is a method of hedging wherein a firm and its supplier merge so that an increase in the price of a commodity raises the firm's costs and the supplier's revenues.

• A)Storage
• B)Horizontal merger
• C)Business rationalization
• D)Vertical integration
• E)Internalization

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Definitions:

Mesozoic

An era of geologic time from about 252 to 66 million years ago, known as the age of reptiles, including dinosaurs.

Cenozoic

The current geological era, beginning 66 million years ago and characterized by the dominance of mammals on Earth.

Precambrian

The earliest part of Earth's history, spanning the time from the formation of the Earth to the start of the Cambrian period, about 4.6 billion to 541 million years ago.

Paleozoic

An era in Earth's geologic history that occurred from about 541 million to 252 million years ago, characterized by the emergence of early life forms.