Undertaking Value-Added Activities That Were Once Outsourced to Suppliers Is

question 22

Multiple Choice

Undertaking value-added activities that were once outsourced to suppliers is known as ________.

• A) backward integration
• B) product development
• C) forward integration
• D) diversification

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Definitions:

Parent Company

A corporation that owns enough voting stock in another firm to control its management and operations by influencing or electing its board of directors.

Foreign Direct Investment

An investment made by a firm or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country.

Environmentally-Friendly

Describes practices, products, or policies that are designed to have minimal or beneficial impact on the environment, often emphasizing sustainability and conservation.

Automotive Engine

A type of engine designed specifically for use in vehicles, converting fuel into mechanical energy to power automotive movement.