Vertical integration, as represented among profit centers in a multibusiness firm, is:
A) always superior to transactions in the market
B) not necessarily superior to transactions in the market
C) never superior to transactions in the market
D) none of the above

Question

Quizplus · Accepted Answer

Vertical integration is not always the best approach; its superiority depends on various factors such as transaction costs, the ability to leverage core competencies, and the strategic fit within the organization.

Vertical Integration, as Represented Among Profit Centers in a Multibusiness