When an Intermediate Manufacturer Moves into Final Assembly,it Is Pursuing

question 38

Multiple Choice

When an intermediate manufacturer moves into final assembly,it is pursuing

• A) backward integration.
• B) forward integration.
• C) taper integration.
• D) related diversification.
• E) unrelated diversification.

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Definitions:

Participating Right

A feature of certain securities that allows the holder to receive dividends or other benefits in addition to the basic rights associated with the security.

Outstanding Stock

Shares of a corporation that have been issued and are currently held by investors, including public shareholders and company insiders.

Authorized Stock

The maximum number of shares a corporation is legally permitted to issue, as specified in its corporate charter.

Noncumulative Nonparticipating

Noncumulative nonparticipating refers to a type of preferred stock where dividends do not accumulate if not declared and the stockholders do not participate in additional corporate earnings beyond the specified dividend rate.