When a Firm Internally Makes 100% of Its Key Supplies

question 16

Multiple Choice

When a firm internally makes 100% of its key supplies and completely controls its distributors, this is known as

• A)full integration.
• B)vertical integration.
• C)mass integration.
• D)economical integration.
• E)strategic integration.

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Definitions:

Purchasing Power

The value of currency expressed by the amount of goods or services that one unit of money can buy.

Inflation Rate

The speed at which the overall price level of goods and services increases, leading to a decline in purchasing power.

Compounded Quarterly

A method in which interest is added to the principal sum of a deposit or loan every three months, leading to interest on interest.

Compounded Monthly

Interest on an investment or loan that is calculated and added to the principal balance once a month, leading to faster growth.