Vertical Integration Is the Same Thing as Disintermediation

question 10

True/False

Vertical integration is the same thing as disintermediation.

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Definitions:

Upstream Sale

A transaction in which a subsidiary sells goods to its parent company, affecting intercompany transactions and profit figures.

Consolidated Financial Statements

Financial statements that aggregate the financial position and results of operations of a parent and its subsidiaries, presenting the economic activities as those of a single entity.

Asset Sold

The process of transferring ownership of a business resource, which could be tangible or intangible, from one entity to another, usually in exchange for cash or its equivalent.

Unrealized Gain

An increase in the value of an asset or investment that has not yet been sold and thus, the gain has not been realized as actual profit.