Question

Q49. According to the passage, all of the following are benefits associated with backward integration EXCEPT:

• A. (a) Improvement in the management of overhead expenses
• B. (b) Enhancement of profit margins on sales of components
• C. (c) Simplification of purchasing and marketing operations
• D. (d) Reliability of a source of necessary components

Answer 1

The correct option is B

(b) Enhancement of profit margins on sales of components

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