The correct answer to this open question is the following.
Although there are no options attached we can say the following.
Why do businesses take financial costs into account other than social costs when making decisions.?
The reason why is because businesses are created to make profits. And financial costs directly impact sales, revenue, and profits. Any other consideration that does not directly affect the balance sheet or the bottom line, is not considered a priority and takes the back seat when business decisions are made.
On the other hand, the social cost should be important and it is, but not as important as the financial costs for the above-mentioned reasons.
Social costs are more on the side of the ethics of the managers or leaders of the organizations. And ethics and moral values are not a prominent thing to be considered in the decision-making process of modern corporations.
Answer:
The answers are Horizontal and Vertical respectively.
Explanation:
Horizontal integration refers to the expansion strategy adopted by the corporations which involves acquisition of one company by another company where both the companies are in the same business line and at same value chain supply level, whereas, Vertical integration refers to the expansion strategy adopted by the corporations where one company acquire another company who is at the different level, usually at the lower level of its value chain supply process.
