Vertical Integration Strategies

question 7

Multiple Choice

Vertical integration strategies

• A) extend a company's competitive scope within the same industry by expanding its operations across more parts of the industry value chain.
• B) are one of the best strategic options for helping companies win the race for global market leadership.
• C) offer good potential to expand a company's lineup of products and services.
• D) are particularly effective in boosting a company's ability to expand into additional geographic markets, particularly the markets of foreign countries.
• E) are a good strategy option for helping a company to revamp its value chain and bypass low value-added activities.

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Definitions:

Revenues

The gross revenue stemming from the primary operational activities of a firm, particularly from selling products or services.

Supplies

Items that are used in the day-to-day operation of a business but do not directly become part of the finished product.

Fees Earned

Income received by a company or professional for services rendered.

Credit

A bookkeeping entry that increases liabilities or equity on the balance sheet or decreases an asset or expense account on the income statement.