A Company Pursuing a Strategy of Vertical Integration May Expand

question 18

Multiple Choice

A company pursuing a strategy of vertical integration may expand its operations:

• A) backward into an industry that produces inputs for the company's products.
• B) by making specialized investments jointly with its competitor.
• C) laterally into an industry that competes with the company's products.
• D) by merging with industry competitors.
• E) by using its capital resources to purchase another company within the industry.

---

Definitions:

Total Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.