Virtue Products Inc

question 121

Multiple Choice

Virtue Products Inc., a large conglomerate, procures a few component parts from external suppliers and also manufactures some of the key raw materials in its own subsidiaries.This apart, the company does not solely depend on outside distributors to reach its customers.In fact, it has its own retail stores to distribute its products.In this scenario, which of the following alternatives to vertical integration is Virtue Products applying?

• A) Concentric integration
• B) Taper integration
• C) Horizontal integration
• D) Conglomerate integration

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Definitions:

Coupon Bond

A debt security that pays the bondholder a fixed interest rate (coupon) periodically until the bond's maturity date, at which point the principal amount is repaid.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering both interest payments and the principal appreciation or depreciation.

Par Value

The face value of a bond or stock, as stated by the issuing company. This is the nominal value and may differ from the market value.

Coupon Bond

A bond that pays the holder a fixed interest rate (coupon) over the bond's lifetime and repays the principal at maturity.