A Large Food Retailer Acquiring a Cheese Factory Is an Example

question 60

Multiple Choice

A large food retailer acquiring a cheese factory is an example of:

• A) dual distribution.
• B) vertical integration.
• C) a tying contract.
• D) horizontal integration.
• E) internal expansion.

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Definitions:

Cash Inflow

The total amount of money being transferred into a business, from operations, investments, or financing activities, within a specific period.

Cash Payback Period

The period of time it takes for a company to recoup an investment exclusively through cash flows.

Depreciation Expense

The allocation of the cost of a tangible asset over its expected useful life to account for its decline in value.

Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment, focusing on cash flow rather than profitability.