Savings That Come from Combining the Marketing and Distribution of Different

question 31

Multiple Choice

Savings that come from combining the marketing and distribution of different types of related products are called:

• A)horizontal integration.
• B)vertical integration.
• C)economies of scale.
• D)economies of scope.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, making them partial owners of the company.

Takeover

The acquisition of control over another company, either through purchasing a majority stake of shares or by other means.

Leveraged Buyout

An acquisition of a company using a significant amount of borrowed money to meet the cost of acquisition.

Going-Private Transaction

A process in which a publicly traded company is transformed into a privately owned entity, often through a buyout.