Which One of the Following Is Least Likely to Provide

question 83

Multiple Choice

Which one of the following is least likely to provide a motivation for vertical integration?

• A) A continuous source of raw materials
• B) A desire to spread fixed costs across more output
• C) Access to an efficient distribution channel
• D) Acquisition of an established customer base

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Definitions:

Acid-test Ratio

A financial measurement of a company's immediate liquidity position, calculated by dividing liquid assets by current liabilities.

Short-term Borrowing

Borrowed funds that are expected to be repaid within a short period, usually one year or less.

Accounts Receivable

Money owed to a business by its clients for goods or services offered on credit.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.