You Are Thinking of Buying a Bread Factory in a Nearby

question 114

Multiple Choice

You are thinking of buying a bread factory in a nearby state.This action would be an example of _________.

• A)vertical integration
• B)diversification
• C)horizontal integration
• D)concentration

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Definitions:

Joint Control

A situation in which two or more parties exercise shared control over a business activity, venture, or entity according to an agreement.

Subsidiaries

Companies that are controlled by another company, known as the parent company, through ownership of more than 50% of the subsidiary's voting stock.

Non-executive Director

A member of a company's board of directors who is not part of the executive team, providing oversight and valuable perspective without managing day-to-day operations.

Related Party

A person or entity that is related to the entity that is preparing its financial statements.