Question

The extent to which a firm engages in the various value chain activities, from initial activities all the way to after-sales activities, is called

a. a joint venture partnership

b. product outsourcing

c. vertical scope

d. horizontal scope

e. vertical integration

Answer 1

c. vertical scope

Step-by-step explanation:

The extent to which a firm engages in the various value chain activities, from initial activities all the way to after-sales activities, is called Vertical Scope

Vertical integration or scope is a practice through which a company owns or regulates the assets or supply chain of its manufacturers, dealers, or retail stores. Vertical integration benefits businesses by enabling them to control the process, cut costs, and improve efficiency.

Answer 2

(e) Vertical integration

Explanation:

1. A Joint Venture partnership is simply the joining of two or more enterprises for a fruitful undertaking of a commercial project.
2. Product Outsourcing means the specialized rendering of production services by a third party instead of the company branding the product in the market in its own name. This is done by the company in order to save costs and focus on its own expertise better.
3. Vertical scope is another name of vertical integration.
4. Horizontal scope is another name of horizontal integration, which implies building more capacity at the same level of a particular product related activity from procuring raw materials for production to after sales services.
5. Vertical integration implies the owning of all the operations involved with respect to a product from procuring raw materials for production to after sales services, by a single company. Hence, we can say that vertical integration is the extent to which a firm engages in the various value chain activities, from initial activities all the way to after-sales activities.