Backward Vertical Integration Can Produce a

question 12

Multiple Choice

Backward vertical integration can produce a

• A)full integration when activities remain the domain of key suppliers.
• B)tapered integration if the firm consolidates all activities in-house.
• C)differentiation-based competitive advantage when activities enhance the performance of the final product.
• D)focused differentiation strategy when the market is broad and the product is a commodity.
• E)lower degree of flexibility in accommodating shifting buyer preferences.

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Definitions:

Volatile

Describing something prone to rapid and unpredictable changes, especially in the stock market or prices.

Risky

Associated with or exposed to a high level of uncertainty and the possibility of experiencing loss or harm.

Debt Financed

The use of borrowed funds to finance projects, acquisitions, or investments, often under terms of repayment with interest.

Invested-Capital Financed

A financial strategy involving the use of both debt and equity to fund a company's operations and investments.