What Is a Backward Integration

question 164

Multiple Choice

What is a backward integration?

• A)the integration of a company's existing management information systems
• B)the integration of data from multiple sources, which provides a unified view of all data
• C)an integration method that sends information entered into a given system automatically to all downstream systems and processes
• D)an integration method that sends information entered into a given system automatically to all upstream systems and processes

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Definitions:

Rental Cost

The expense incurred from hiring or leasing a property or equipment.

Retains Earnings

Profits that a company keeps after dividends have been paid out to shareholders, often re-invested into the business for growth, paying off debt, or other purposes.

Investment Purposes

The intention behind allocating resources, often funds, into financial assets, real estate, or business ventures aiming to generate future returns.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production, considered a key factor in determining the resources employed by a firm.