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Forward integration most likely results in:
A. Reduced access to distribution channels.
B. Obtaining less information about demand.
C. Product standardization.
D. Higher price realization.
Answer: D
Explanation:
Forward integration may permit higher price realization, for example, by moving into businesses in which the price elasticity of demand is relatively high and lower prices must be set. When demand is elastic, raising prices decreases revenue. Thus, the firm may benefit by acquiring customers with highelasticitywhile selling to customers with lowelasticity.
NEW QUESTION: 2
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B. Add campaign members to other related campaigns using an Apex trigger
C. Convert leads to contacts from the campaign record
D. Update the campaign member status of a lead using the manage campaign members feature
Answer: B,D
NEW QUESTION: 3
Capital structure decisions involve determining the proportions of financing from:
A. Retained earnings or ordinary stock.
B. Debt or equity.
C. Short-term or long-term debt
D. Short-term or long-term assets.
Answer: B
Explanation:
The optimal capital structure minimizes the weighted average cost of capital and thereby maximizes the value of the entity's stock. Both debt and equity are factors in an entity's capital structure.
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