14. According to the passage, all of the following are benefits associated with backward integration EXCEPT:

a) Improvement in the management of overhead expenses

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b) Enhancement of profit margins on sales of components

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c) Simplification of purchasing and marketing operations

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d) Reliability of a source of necessary components

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Solution

The correct option is B
b) Enhancement of profit margins on sales of components

Ans:14) (b) According to the passage, all of the following are benefits associated with backward integration EXCEPT enhancement of profit margins on sales of components.

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