Vertical Integration Strategies

question 7

Multiple Choice

Vertical integration strategies

• A)extend a company's competitive and operating scope because its operations extend across more parts of the total industry value chain.
• B)are one of the best strategic options for helping companies win the race for global market leadership.
• C)are a cost-effective means of expanding a company's lineup of products and services.
• D)are particularly effective in boosting a company's ability to expand into additional geographic markets,particularly the markets of foreign countries.
• E)are a good strategy option for improving a company's supply chain management capabilities,pursuing efforts to remodel a company's value chain,achieving direct control over the costs of performing value chain activities,and gaining access to buyers.

---

Definitions:

Fair Market Value

The estimated price at which an asset would change hands between a willing buyer and a willing seller, with both parties having reasonable knowledge of all relevant facts and neither being compelled to buy or sell.

Accounts Payable

Accounts payable are liabilities or money owed by a company to its creditors for goods and services received.

Uniform Partnership Act

Laws enacted in most states that govern how a partnership is formed, operated, and liquidated.

John Partner's, Capital

Represents the account on a balance sheet indicating the value of an owner's (John Partner, in this case) interest in the business.