If Digipics Were to Begin Selling the Cameras It Assembled

question 78

Multiple Choice

If Digipics were to begin selling the cameras it assembled directly to customers through a website operated by the company, this would be an example of

• A) backward vertical integration.
• B) a strategic alliance.
• C) forward vertical integration.
• D) opportunism.

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Definitions:

Full-Service Contract

An agreement that provides a complete range of services related to a specific product, property, or activity, including maintenance, repairs, and often replacements.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes involved in maintaining the operation.

Operating Loss

A financial metric representing the negative balance resulting from a company's operating expenses exceeding its revenues.

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced, such as raw materials and labor expenses.