Which of the following statements concerning vertical integration is not correct?
A)Vertical integration can reduce a company's overall cost of production.
B)Vertical integration allows a company to circumvent powerful buyers and suppliers.
C)Vertical integration can be used to protect a company's investments in proprietary technology.
D)Vertical integration is a means of implementing just-in-time inventory systems when suppliers are unreliable.
E)Vertical integration facilitates the attainment of economies of scope.

Question

Quizplus · Accepted Answer

Vertical integration primarily focuses on controlling the supply chain rather than achieving economies of scope, which involves cost advantages from producing a variety of products.

Which of the Following Statements Concerning Vertical Integration Is Not