1) Firms that use taper integration also use _____ when they rely on outside-market firms for some of their supplies.
a) backward horizontal integration
b) forward vertical integration
c) forward horizontal integration
d) backward vertical integration
2) Symphon Times Inc., a Swiss-based premium watch brand, has recently started selling its watches through company-owned retail outlets in major cities of the emerging nations. Which of the following types of diversification strategies is the firm pursuing?
a) geographic diversification strategy
b) product-market diversification strategy
c) product diversification strategy
d) process diversification strategy
3) Which of the following motivations for business growth involves principal-agent problems?
a) motivating managers
b) increasing market power
c) increasing profits
d) reducing risk