Backward Integration Involves

question 63

Multiple Choice

Backward integration involves

• A) performing industry value chain activities previously performed by suppliers or other companies engaged in earlier stages of the value chain.
• B) Linking with businesses within the array of value chain activities to eliminate competition and broaden the product offering.
• C) capitalizing on company's underutilized managerial capabilities for achieving greater synergistic cost advantages.
• D) reducing the opportunity for achieving greater product differentiation.
• E) developing new skills and business capabilities.

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Definitions:

Inflation

The rate at which the average cost of goods and services ascends, leading to a decrease in monetary value over time.

Creditors

Individuals or institutions that lend money or extend credit to others, expecting repayment in the future with interest.

Debtors

Individuals or entities that owe money to another entity, typically as a result of borrowing funds.

Business Owners

Individuals who legally possess a company, assume major risks, and enjoy the benefits from its operation and growth.