Which of the following statements regarding vertical integration is FALSE?
A)Vertically integrated companies may be large,but unlike other large corporations,since they remain focused in one industry,they are easy to run.
B)A company might not be happy with how its products are being distributed,so it might decide to take control of its distribution channels.
C)A company might conclude that it can enhance its product if it has direct control of the inputs required to make the product.
D)The principal benefit of vertical integration is coordination.By putting two companies under central control,management can ensure that both companies work toward a common goal.

Question

Quizplus · Accepted Answer

The statement "Vertically integrated companies may be large, but unlike other large corporations, since they remain focused in one industry, they are easy to run" is false. Vertically integrated companies may be complex to run because they involve multiple stages of production, and require coordination among different departments and processes.

Which of the Following Statements Regarding Vertical Integration Is FALSE