What Happens in Forward Integration

question 60

Multiple Choice

What happens in forward integration?

• A) The firm begins to control the outlets for its products.
• B) The firm buys other non-related firms.
• C) A firm takes over operations that were previously the responsibility of its suppliers.
• D) The firm merges with similar firms from other countries.
• E) The firm expands its geographical reach.

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Definitions:

Prop Up Earnings

Tactics used by companies to artificially inflate or support their reported earnings per share (EPS) without a real increase in profitability.

Slightly Positive

Referring to a modestly favorable outcome or result, often used in the context of financial results or economic indicators.

Capacity Swaps

Capacity swaps involve the exchange of production capacity or output between companies, usually to meet demand or manage surplus without the exchange of monetary payment.

Telecommunications Companies

Businesses that provide services in communication over long distances through phones, internet, cable, and other technologies.