A Firm Acquiring Another Firm at a Different Level of Activity

question 4

Multiple Choice

A firm acquiring another firm at a different level of activity within a channel of distribution is known as

• A)vertical integration.
• B)establishing a tying contract.
• C)dual distribution.
• D)horizontal integration.
• E)a regrouping activity.

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Definitions:

Millilitres

A metric unit of volume equal to one thousandth of a liter, commonly used in liquid measurement.

Classification

The action or process of categorizing something according to shared qualities or characteristics.

Basis

In finance, the difference between the cash price and the futures price of an asset; in accounting, the initial value of an asset for tax purposes.

Vehicles

Modes of transportation that include cars, trucks, bicycles, and any other means of transporting people or goods.