Taper Integration

question 43

Multiple Choice

Taper integration

• A)has higher bureaucratic costs than does full integration.
• B)has lower bureaucratic costs than does long-term contracts.
• C)can increase the incentive for in-house suppliers to reduce costs.
• D)is preferable to full integration when demand conditions are stable.
• E)eliminates the disadvantage of potential technological obsolescence.

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Definitions:

Investment Rates

The percentage of an asset's value that is being invested or the rate at which capital is being used to generate economic activity.

Higher Incomes

Increased earnings of individuals, households, or nations, typically leading to more disposable income and consumption.

Growth Of Income

An increase in the amount of money received by an individual, group, or country over a period of time.