Under Which of the Following Circumstances Is Vertical Integration Considered

question 63

Multiple Choice

Under which of the following circumstances is vertical integration considered hazardous?

• A) When the demand for the product fluctuates frequently
• B) When vertical integration involves moving downstream into retailing
• C) When the value added by successive stages of production is declining
• D) When the industries involved are undergoing rapid expansion
• E) When the company's competitors are also following a strategy of vertical integration

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Definitions:

Provision

The act of supplying or making available goods, services, or resources to meet a need or demand.

Labor Union

An organization formed by workers in the same trade or industry to negotiate collectively with their employers over wages, hours, benefits, and working conditions.

Employment Discrimination

Unfair treatment of employees or job applicants based on race, gender, age, religion, or other personal characteristics rather than job performance or qualifications.

Personal Prejudices

Preconceived opinions or biases held by an individual that are not based on reason or actual experience.