A Firm with a ________ Ratio Between Value Added and Sales

question 6

Multiple Choice

A firm with a ________ ratio between value added and sales has brought ________ of the value-creating activities associated with its business inside its boundaries, consistent with a high level of vertical integration.

• A) low; many
• B) high; many
• C) medium; many
• D) medium; few

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Definitions:

Premium

An amount paid periodically to the insurer by the insured for covering his risk or the cost above the nominal value of something.

Temporary Insurance

Short-term coverage designed to provide protection for a limited period, often while awaiting the implementation of permanent insurance.

Binder Agreement

A temporary insurance contract providing coverage until a formal policy is issued.

Insurance Application

A document that contains an individual's or entity’s request for insurance coverage, detailing the specifics of the coverage sought.