Fine Electronics Is a Corporation That Controls All Aspects of Its

question 13

Multiple Choice

 Fine Electronics is a corporation that controls all aspects of its business such as extracting raw materials, manufacturing the products, distributing them, and finally marketing to customers. It manages these activities through several business units, where one unit provides inputs to the other. This is an example of

• A) unrelated diversification.
• B) vertical integration.
• C) strategic flexibility.
• D) franchising.

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Definitions:

Exercise Option

The act of implementing the right to buy or sell an asset under the terms of an option contract.

Purchase

The act of buying goods, services, or assets.

Liquidate

To convert assets into cash or to settle debts by selling off assets.

Scanlon Plan

A type of gainsharing program where employees share in financial gains through productivity improvements.