Which of the Following Is Not a Potential Advantage of Backward

question 27

Multiple Choice

Which of the following is not a potential advantage of backward vertical integration?

• A)The increase in a company's differentiation capabilities and the possibility of a differentiation-based competitive advantage
• B)Reduced vulnerability to powerful suppliers (who may be inclined to raise prices at every opportunity)
• C)Reduced costs
• D)Reduced risks of disruptions in obtaining crucial components or support services
• E)Reduced business risk because of controlling a bigger portion of the overall industry value chain

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Definitions:

Negotiable Instrument

A written document guaranteeing the payment of a specified amount of money, either on demand or at a set time.

Relative Permanence

The quality of a negotiable instrument that ensures its longevity.

Writing Requirement

The writing requirement refers to legal stipulations that certain types of agreements or contracts must be documented in written form to be legally valid.

Drawer

A drawer is a person or entity that issues or writes a check or draft, instructing a bank or similar institution to pay a specific amount of money to a designated party.