Question

The risks of vertical integration include all of the following EXCEPT: a. costs and expenses associated with increased overhead and capital expenditures. b. problems associated with unbalanced capacities along the value chain. c. lack of control over valuable assets. d. additional administrative costs associated with managing a more complex set of activities.

Answer 1

Answer: Lack of control over valuable assets

 

Explanation: In simple words, vertical integration refers to a process under which an organisation combines two or more stages of production which were previously performed by any other company.

The vertical integration is done where the company wants to get more hold on its supply chain with the ultimate objective of having better control over valuable assets.

Hence from the above we can conclude that the correct option is C.