A Firm That Expands by Producing Its Own Raw Materials

question 38

Multiple Choice

A firm that expands by producing its own raw materials or acquiring a retail outlet to sell its own products is most likely using a strategy of ________.

• A) consolidation
• B) geographic expansion
• C) vertical integration
• D) diversification

---

Definitions:

Expenditure Programs

Government policies focused on spending in specific areas such as health, education, and infrastructure to promote economic growth and welfare.

National Defense

Governmental and military activities aimed at protecting a country and its citizens from external threats and ensuring national security.

Efficiency

The optimal allocation of resources to maximize the production of goods and services.

Equity

The value of an asset after deducting what is owed on it, or the ownership interest in a company as held by shareholders.