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:

Current Assets

Current assets are a balance sheet item that represents the value of all assets that can reasonably be expected to be converted into cash within one year, including cash, marketable securities, accounts receivable, and inventory.

Total Assets

The sum of all assets owned by a business, including cash, investments, property, and equipment, representing the resources it has at its disposal.

Cash

A form of liquid asset that represents immediate purchasing power and can be used for transactions or as a reserve for future payments.

Receivables

Balances owed by customers for the consumption or acquisition of goods and services provided by a company, pending payment.