A Firm Becomes More Vertically Integrated When

question 57

Multiple Choice

A firm becomes more vertically integrated when

• A)it buys a direct competitor.
• B)its management and staff are better aligned.
• C)it moves to own more stages of the value chain, either upstream or downstream of its core activity.
• D)it owns only some activities on the upstream or supply-side of its foremost activity.

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Definitions:

Interest Rates

The cost of borrowing money, often expressed as a percentage of the amount borrowed, which can influence consumer spending and economic growth.

Store of Value

An asset that can be saved, retrieved, and exchanged in the future without deteriorating in value.

Medium of Exchange

An instrument used to facilitate the sale, purchase, or trade of goods between parties.

Small Denomination CDs

Certificates of Deposit that are issued in relatively small amounts, making them accessible to individual investors.