Which of the Following Factors Affect Vertical Integration of Firms

question 47

Multiple Choice

Which of the following factors affect vertical integration of firms?

• A)The demand for the final product in the market.
• B)The market power of each firm in an industry.
• C)The number of firms in an industry.
• D)The transaction cost at each stage of production.

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Definitions:

Notes Payable

Financial obligations or loans evidenced by promissory notes, to be repaid to the creditor at future dates.

Prepaid Insurance

An asset account on the balance sheet representing insurance payments made in advance for future coverage periods.

Adjusting Entry

An accounting record made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Weekly Wages

The total amount of earnings paid to an employee or group of employees on a weekly basis.