Which of the Following Is NOT an Advantage of Vertical

question 155

Multiple Choice

Which of the following is NOT an advantage of vertical integration?

• A) Lower executive overhead.
• B) Better control of distribution.
• C) Easier adjustment of discrepancies of quantity and assortment.
• D) Greater buying power.
• E) Stable sources of supplies.

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Definitions:

Automobile Manufacturer

A company engaged in the design, production, marketing, and selling of motor vehicles.

Protective Tariffs

Levies placed on goods brought into a country to safeguard local businesses against overseas competition by increasing the cost of foreign products.

National Railroad Network

A widespread system of railways covering a nation, facilitating the transportation of goods and passengers across various regions.

Global Economy

The interconnected worldwide economic activities that involve the exchange of goods, services, technology, and capital across borders.