Consider the following statements:
I. A vertically integrated company is more dependent on its suppliers than a company that is not vertically integrated.
II. Many companies feel they can control quality better by making their own parts.
III. A vertically integrated company realizes profits from the parts it is "making" instead of "buying" as well as profits from its regular operations.
Which of the above statements represent advantages to a company that is vertically integrated?
A) Only I
B) Only III
C) Only I and II
D) Only II and III

Question

Quizplus · Accepted Answer

Statement II is an advantage to a vertically integrated company because it allows for better quality control. Statement III is also an advantage because a vertically integrated company can realize profits from both its regular operations and the parts it produces. Statement I is not necessarily an advantage, as a vertically integrated company may be more dependent on its suppliers but may also have more control over its supply chain.

Consider the Following Statements