A Disadvantage of Vertical Integration Is That by Pooling Demand

question 22

True/False

A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier will face diseconomies of scale that result in lower quality and higher cost than if every company makes its own parts.

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Dun & Bradstreet Canada

A branch of the global corporation Dun & Bradstreet that specializes in providing commercial data, analytics, and insights for businesses in Canada.

Fixed Asset Turnover Ratio

A financial metric that measures how efficiently a company uses its fixed assets to generate sales.

Net Income

The financial gain a company realizes after all deductions, including taxes and costs, are taken from revenue.

Total Assets

The sum of all assets owned by an individual or organization, including cash, investments, property, and other valuables, representing the total resources available for use in generating future income.