Exam 9: Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

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When a bank offers home mortgages and credit cards to its checking account customers,it is using horizontal integration strategy.

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To build trust in a cooperative relationship,both firms can:

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A company pursuing a strategy of vertical integration may expand its operations:

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Horizontal integration may be thought of as:

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Companies invest in specialized assets because these assets allow them to:

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Which of the following problems is associated with the strategy of vertical integration?

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An automobile company enters into a long-term contract with two suppliers for the same automobile tool.This is to ensure the company is protected in the event one of the suppliers adopts an uncooperative attitude.Which of the following concepts is illustrated in this scenario?

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Oracle Corp.,based in Reno,Nevada,has purchased several other companies to become the world's largest maker of database software.This strategy is known as the strategy of acquisition.

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Strategic outsourcing is the decision to allow one or more of a company's value chain activities or functions to be performed by independent companies.

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The price that one division of a company charges another division for its products,which are the inputs the other division requires to manufacture its own products is known as:

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A leading software company merged with its competitor to form a new company.Which of the following is likely to be the result of this merger?

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