Which of the Following Statements Is True About Vertical Integration

Multiple Choice

Which of the following statements is true about vertical integration in the context of a multidivisional organizational structure?

A) It is a less expensive strategy to manage than unrelated diversification.
B) It makes delegation of authority easier between corporate and divisional managers.
C) It does not require the exchange of information and skills among managers of different divisions.
D) It is managed through a combination of corporate and divisional controls.
E) It often increases the scope for transfer pricing problems.