Which of the Following Statements Regarding 'Vertical Integration' Is FALSE

question 8

Multiple Choice

Which of the following statements regarding 'vertical integration' is FALSE?

• A)A company might not be happy with how its products are being distributed, so it might decide to take control of its distribution channels.
• B)Vertically integrated companies may be large, but unlike other large corporations, since they remain focused in one industry they are easy to run.
• C)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.
• D)A company might conclude that it can enhance its product if it has direct control of the inputs required to make the product.

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Definitions:

Neonates

Newborn babies, especially those less than a month old.

Speech Sounds

The auditory symbols used in language communication, produced by the movement of the speech apparatus.

Axons

Long, threadlike parts of nerve cells along which impulses are conducted from the cell body to other cells.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.