If a Computer Manufacturer Purchases a Semiconductor Company, What Form

question 22

Multiple Choice

If a computer manufacturer purchases a semiconductor company, what form of integration is this?

• A)Horizontal integration
• B)Vertical integration
• C)Backward integration
• D)Forward integration

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Definitions:

Potential Customers

Potential customers are individuals or entities that have not yet purchased but have shown interest or fit the profile of a company's target market.

Expected Profit

The projected financial gain a company anticipates earning from its operations or investments, based on various assumptions and calculations.

Price

The amount of money required to purchase a good or service.

Marginal Costs

The change in total costs that arises when the quantity produced is incremented by one unit; it is the cost of producing one more unit of a good.