If a Firm Wants to Have More Ownership of the Activities

question 100

Multiple Choice

If a firm wants to have more ownership of the activities closer to product inputs or design,then it should:

• A) Backward vertically integrate.
• B) Forward vertically integrate.
• C) Forward horizontally integrate.
• D) Use a single-business diversification strategy.

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Definitions:

Promissory Estoppel

A legal principle where a promise is enforceable by law, even if made without formal consideration, when a promisor has made a promise to a promisee who then relies on that promise to his or her detriment.

Legal Enforcement

The act of compelling compliance with the law, often through police or judicial action.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the parties involved to be enforceable.

Subject of Agreement

The specific matter or issue that is being agreed upon or contracted between parties.