One Huge Problem with Vertical Integration of Activities with Only

question 48

Multiple Choice

One huge problem with vertical integration of activities with only one major sellable output is

• A)the company will be too large to manage efficiently.
• B)the entire integrated value-chain is subject to the same single market risk.
• C)upstream stages are isolated from market forces.
• D)it's no longer possible to use external suppliers.

Recognize the function of specific words and phrases in indicating premises and conclusions.

Appreciate the importance of communication skills in identifying and discussing issues.

Comprehend the structure and purpose of arguments.

Distinguish between inductive and deductive arguments and their implications for the truth of conclusions.

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Definitions:

Ownership Claim

The legal right or interest that an owner possesses in property, assets, or a company, granting the power to control or dispose of it.

Debtor Claim

A demand for repayment from a debtor; may refer to the legal right to demand money owed.

Limited Liability

A legal structure that limits the personal financial responsibility of owners for the debts and actions of a business.

Corporation

A legal entity distinct from its owners, offering limited liability to its shareholders, and capable of owning assets, incurring debt, and conducting business.