One of the risks of vertical integration is that there may be problems associated with unbalanced capacities along the value chain of a firm.

Question

Quizplus · Accepted Answer

The risks of vertical integration include: the costs and expenses associated with increased overhead and capital expenditures; a loss of flexibility resulting from large investments; problems associated with unbalanced capacities along the value chain; and additional administrative costs associated with managing a more complex set of activities.

One of the Risks of Vertical Integration Is That There