Which of the Following Is a Disadvantage of Vertical Integration

Multiple Choice

Which of the following is a disadvantage of vertical integration?

A) It fails to protect a firm's proprietary product technology.
B) Firms lose out on the opportunities to build dynamic capabilities.
C) It is difficult to determine appropriate prices for goods transferred to subunits within a firm.
D) It fails to facilitate investments in highly specialized assets.
E) It does not allow a firm to exercise tight control over its production process.