The property rights theory of vertical integration assumes that the organization that vertically integrates an activity:
A) has the strongest Value minus Cost position
B) benefits the most from performing the activity in-house
C) has the lowest control needs
D) is the least opportunistic

Question

Quizplus · Accepted Answer

The property rights theory of vertical integration suggests that an organization will choose to vertically integrate an activity when it benefits the most from performing the activity in-house, due to factors like reducing transaction costs, improving coordination, and protecting proprietary knowledge or skills.

The Property Rights Theory of Vertical Integration Assumes That the Organization