Which of the Following Is NOT a Potential Advantage of Backward

question 78

Multiple Choice

Which of the following is NOT a potential advantage of backward vertical integration?

• A) Reduced vulnerability to powerful suppliers (who may be inclined to raise prices at every opportunity)
• B) Reduced risks of disruptions in obtaining crucial components or support services
• C) Reduced costs
• D) Reduced business risk because of controlling a bigger portion of the overall industry value chain
• E) Increase in a company's differentiation capabilities and perhaps achieving a differentiation-based competitive advantage

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Definitions:

Obligation

A legal or moral duty to do something or to abstain from doing something.

Donee Beneficiary

A third party who benefits from a contract made between two other parties, specifically where the intent is to benefit the third party.

Creditor Beneficiary

A person or entity that benefits from a contract made between two other parties, particularly where one party promises to pay a debt owed to the beneficiary.

Breach Of Contract

An instance wherein one party fails to fulfill their obligations under a contract.