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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