When Apple, Inc

question 95

Multiple Choice

When Apple, Inc. opened retail stores to sell its computers and iPods, this was an example of

• A) forward vertical integration.
• B) backward vertical integration.
• C) forward horizontal integration.
• D) backward horizontal integration.

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Definitions:

Fixed Cost

Costs that remain constant regardless of any change in a firm's activity level, such as lease payments or insurance premiums.

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life.

Discount Rate

In discounted cash flow analysis, it's the rate used to bring future cash flows down to their present worth.

Accounting Break-even Quantity

The number of units that must be sold to cover all costs, both fixed and variable, with no profit or loss.