Which of the Following Statements Regarding Vertical Integration Is FALSE

question 38

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:

Decay

The process by which information is lost from memory over time, typically due to the passage of time and lack of use.

Organic Amnesia

A form of amnesia caused by physical damage to the brain, leading to memory loss.

Psychogenic

Originating in the mind or in mental or emotional processes; having a psychological rather than a physiological cause.

Head Injury

Physical trauma to the head, which can lead to various levels of brain injury, ranging from mild concussions to severe brain damage.