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03 Nov 2018, 10:06
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teaserbae
Kaczet has pointed out another common phrase in the business world used to describe this type of arrangement (thanks!).
But to make this incredibly simple: owning the producers means literally owning the companies that produce. It's as simple as that. And if you own the companies that produce, then you don't have to negotiate contracts to purchase the components produced by those companies. Everything produced is already property of your company. I hope this helps clarify!
PriyankGaur
Joined: 29 Jan 2019
Last visit: 23 May 2025
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Schools: Darden '22 (D) ISB '21 (A)
GMAT 1: 720 Q49 V39
07 Mar 2019, 00:00
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However, moving away from backward integration is not a complete solution either. Developing innovative technologies requires independent suppliers of components to invest huge sums in research and development. The resulting low profit margins on the sale of components threaten the long-term financial stability of these firms. Because the ability of end-product assemblers to respond to market opportunities depends heavily on suppliers of components, assemblers are often forced to integrate by purchasing the suppliers of components just to keep their suppliers in business.
The part in bold makes D the correct choice
The part in bold makes D the correct choice
Timebomb
Joined: 29 Nov 2016
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Schools: Stern '22 (A) Booth '22 (D) CBS '22 (D) Wharton '22 (D) Duke '22 (D) Kellogg '22 (A) Tuck '22 (D) Darden '22 (D)
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27 Jun 2019, 02:17
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3. Which of the following best describes the way the last paragraph functions in the context of the passage?
(A) The last in a series of arguments supporting the central argument of the passage is presented.
(B) A viewpoint is presented which qualifies one presented earlier in the passage.
(C) Evidence is presented in support of the argument developed in the preceding paragrap.
(D) Questions arising from the earlier discussion are identified as points of departure for further study of the topic.
(E) A specific example is presented to illustrate the main elements of argument presented in the earlier paragraphs.
can some one please provide an answer to this?
I marked A. isnt the central idea of passage that it is difficult to make a choice between doing backward integration and not doing the backward integration?
Isnt last para an argument that supports the central idea as a whole?
(A) The last in a series of arguments supporting the central argument of the passage is presented.
(B) A viewpoint is presented which qualifies one presented earlier in the passage.
(C) Evidence is presented in support of the argument developed in the preceding paragrap.
(D) Questions arising from the earlier discussion are identified as points of departure for further study of the topic.
(E) A specific example is presented to illustrate the main elements of argument presented in the earlier paragraphs.
can some one please provide an answer to this?
I marked A. isnt the central idea of passage that it is difficult to make a choice between doing backward integration and not doing the backward integration?
Isnt last para an argument that supports the central idea as a whole?
