Asked by Masaki Sakurai on May 25, 2024
Verified
A vertically integrated company is less dependent on its suppliers than a company that is not vertically integrated.
Vertically Integrated
A company structure where the supply chain of a company is owned or controlled by that company, from raw materials to final product distribution.
Suppliers
Entities that provide goods or services to another organization, often integral to the supply chain.
- Understand the significance of opportunity costs in the process of making decisions.
Verified Answer
SS
Samuel SpicerMay 27, 2024
Final Answer :
True
Explanation :
Vertically integrated companies own and control the entire supply chain, from raw materials to finished products. Therefore, they are less dependent on external suppliers for raw materials, manufacturing, and distribution, which reduces their risks and increases their control over costs and quality.
Learning Objectives
- Understand the significance of opportunity costs in the process of making decisions.