Which of the Following Statements Regarding Vertical Integration Is False

question 41

Multiple Choice

Which of the following statements regarding vertical integration is false?

• A) Vertically integrated companies may be large, but unlike other large corporations, since they remain focused in one industry they are easy to run.
• B) A company might not be happy with how its products are being distributed, so it might decide to take control of its distribution channels.
• C) A company might conclude that it can enhance its product if it has direct control of the inputs required to make the product.
• D) The principal benefit of vertical integration is coordination. By putting two companies under central control, management can ensure that both companies work toward a common goal.

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Definitions:

Team Viability

The capacity of a team to continue working effectively over time, maintaining the potential for future success.

Long-Run Test

A long-run test is an evaluation conducted over an extended period of time to assess the sustainability, reliability, or performance of a product, service, or system under prolonged use.

Performance Effectiveness

A measurement of how well an individual or organization achieves its goals.

Operating Systems

Software that manages computer hardware and software resources, providing common services for computer programs.