Arthur Had Trouble Locating the Top Quality Tomatoes That His

question 81

Multiple Choice

Arthur had trouble locating the top quality tomatoes that his customers wanted in their marinated tomato salads.When he could find no vendor to supply the tomatoes necessary for the salads,he invested in a farm in southern California to produce the tomatoes.Arthur engaged in:

• A) horizontal integration
• B) market expansion
• C) co-operative buying
• D) market penetration
• E) vertical integration

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Definitions:

Merchandise Inventory

Goods that a company holds with the intent of selling them to customers.

Accounts Payable

Liabilities or amounts owed by a business to creditors for purchases or services rendered that haven't been paid for yet.

Contra-Asset

An account displayed on the balance sheet that reduces the value of a related asset, such as accumulated depreciation.

Liability

Financial obligations, debts, or responsibilities owed by a business to others, to be settled over time through the transfer of economic benefits.