Horizontal and Vertical Relations

question 6

Essay

Horizontal and Vertical Relations. Dell Computer Corp. designs, develops, manufactures, markets, services and supports a wide range of computer systems, including desktops, notebooks and network servers, and also markets software, peripherals and service and support programs. They are the world's leading direct computer systems company and one of the top five computer vendors in the world. Compaq Computer Corp. designs, develops, manufactures, and markets a wide range of personal computing products, including desktop personal computers, portable computers, PC servers and peripheral products that store and manage data in network environments. The company markets its products primarily to business, home, government, and education customers. Compaq operates in one principal industry segment across geographically diverse markets.
A. Do Dell and Compaq share important elements of a vertical relationship? If so, how?
B. Do Dell and Compaq share important elements of a horizontal relationship? If so, how?

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Definitions:

Effective Interest Method

A method of calculating the amortized cost of a bond and the amount of interest expense over the life of the bond by applying the effective interest rate to the carrying amount of the bond.

Accrued Interest

Interest that has been earned but not yet received or recorded as payment, often associated with loans or bonds.

Bond Sinking Fund

A fund set up by an issuer of a bond in which money is saved over time for the sole purpose of redeeming or buying back some or all of the bonds prior to their maturity.

Bond Sinking Fund

A method employed by issuers of bonds to set aside money over time to retire their debt at maturity.