The Two Best Reasons for Investing Company Resources in Vertical

question 51

Multiple Choice

The two best reasons for investing company resources in vertical integration (either forward or backward) are to

• A)speed entry into foreign markets and/or exercise stronger control over operating costs.
• B)broaden the firm's product line and/or enable the company to charge a premium price for its product/service.
• C)gain a first-mover advantage in adopting new production technologies and/or employ potent defensive strategies.
• D)strengthen the company's competitive position and/or boost its profitability.
• E)achieve greater product differentiation and/or gain better access to prospective buyers.

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Definitions:

Benefit Format

The structure or manner in which employee benefits are organized, offered, and communicated within an organization.

Employment Insurance

A government program offering temporary financial assistance to unemployed workers who meet certain eligibility criteria.

Legally Required

Mandates or obligations imposed by law that individuals, organizations, or entities are required to follow.

Overall Strategy

Encompasses the broad, long-term action plans and decisions made by an organization to achieve its major goals and objectives.