Exam 10: Vertical Integration and the Scope of the Firm

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The main manifestation of the trend towards vertical de-integration is the growth of outsourcing.

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One of the advantages of a company providing its own facilities maintenance services is that the incentives that a wholly owned and directly managed maintenance unit is subject to "high powered" incentives.

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The opening quotation concerning Bath Fitter illustrates the following benefits of vertical integration:

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