Which of the Following Is a Benefit That Firms Should

question 52

Multiple Choice

Which of the following is a benefit that firms should expect to gain from the use of horizontal integration?

• A) Reduced risk of coming into conflict with the FTC
• B) Better realization of economies of scale
• C) Greater control over the entire supply chain
• D) Reduced risk of holdup
• E) Reduced need for investment in core activities

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Definitions:

Alternative Dispute Resolution

A range of processes and techniques outside of the judicial system that are used to resolve conflicts or disputes between parties, including mediation and arbitration.

Mediation

A conflict resolution method involving a neutral third-party mediator who helps disputing parties reach a voluntary, mutually acceptable agreement.

Arbitration

A dispute resolution process in which a neutral third party makes a binding decision to resolve a conflict between parties.

Effective Communication

The exchange of information in a way that is clearly understood by all parties involved.