Which of the Following Is True of Vertical Integration?​

question 100

Multiple Choice

Which of the following is true of vertical integration?​

• A)It occurs when firms internalize certain stages of production that were earlier contracted to suppliers.
• B)It occurs when a firm adds more layers of management to increase transparency in the accounting system.
• C)It occurs when firms try to buy up their competitors and corner the market.
• D)It has no effect on the internal organization of a firm; it only affects outside markets.
• E)It occurs when a firm buys another firm in a completely unrelated market.

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Definitions:

FUTA

This Act enforces a payroll tax on enterprises to finance state labor agencies, known as the Federal Unemployment Tax Act.

SUTA

State Unemployment Tax Act, which mandates unemployment insurance taxes that employers must pay.

Workers' Compensation

A type of insurance that offers medical benefits and replaces wages for workers hurt while performing their job duties.

Injured

This term typically refers to physical harm or damage suffered by a person or entity, not usually a key term in a financial or business context, so NO.