In the Decision to 'Make' or 'Buy',an Argument That Supports

question 45

Multiple Choice

In the decision to 'make' or 'buy',an argument that supports making all or part of a product in-house is by adopting the principle of:

• A)horizontal integration.
• B)conglomerate integration.
• C)seasonal integration.
• D)vertical integration.

---

Definitions:

Selling

Selling involves the exchange of goods or services for money or value, constituting a fundamental activity in business to generate revenue.

Administrative Expenses

Costs related to the general operation and management of a business including office supplies, salaries of non-sales personnel, and rental fees.

Installment Sales

A method of recognizing revenue from sales that are paid for over time through multiple payments.

Initial Franchise Fee

A one-time charge that a new franchisee pays to the franchiser for the rights to operate a franchise, covering initial training, support, and access to the business model.