Which One of the Following Is an Example of BACKWARD

question 64

Multiple Choice

Which one of the following is an example of BACKWARD integration?

• A) an automobile company opening a plant to manufacture spark plugs
• B) an airline company purchasing a retail clothing store
• C) a personal computer manufacturer opening retail computer sales stores
• D) a local bank opening branch offices in neighboring states

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Definitions:

Treasury Yield Curve

A graphical representation showing the yields on U.S. Treasury securities at fixed maturities, indicating the relationship between interest rates and the length of time to maturity.

Short-term Yields

Interest rates or returns on investments or securities that mature in a short period, typically less than one year.

A Credit Rating

A measure used by creditors to determine the ability of a borrower to pay back debt.

Bond Prices

The market price at which a bond is traded, which can fluctuate based on interest rates and the bond’s credit rating among other factors.