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