Which of the Following Is an Example of Vertical Integration

question 137

Multiple Choice

Which of the following is an example of vertical integration?

• A)A newsprint manufacturer owns a forestry company.
• B)Zeke is on the boards of directors of an oil exploration company and a gasoline retailer.
• C)A steel company removes two levels from its organizational hierarchy.
• D)An automobile company introduces computer aided design.
• E)Two banks agree to merge.

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Definitions:

Internal Users

Individuals within an organization who use its financial information to make decisions, including executives, managers, and other employees.

Management Reports

Analytical reports designed for business managers to assist in making strategic decisions.

Decision Making

The cognitive process resulting in the selection of a course of action among several possible alternatives.

Long-Term Assets

Long-term assets, also known as non-current assets, are resources a company expects to use or hold for more than one year, such as property, plant, and equipment.