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The opening quotation concerning Bath Fitter illustrates the following benefits of vertical integration:


A) Technical economies from the physical integration of processes
B) Avoiding the transactions costs involved monitoring and enforcing contracts with external suppliers
C) Economies of scale
D) None of the above.

E) B) and C)
F) A) and D)

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The main manifestation of the trend towards vertical de-integration is the growth of outsourcing.

A) True
B) False

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One of the advantages of a company providing its own facilities maintenance services is that the incentives that a wholly owned and directly managed maintenance unit is subject to "high powered" incentives.

A) True
B) False

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