21. The major substitute for vertical integration is

A. vertical disintegration.

B. strategic alliances.

C. a product-differentiation strategy.

D. a low-cost strategy.

22. A firm implements a ________ when it operates in multiple industries or markets simultaneously.

A. vertical integration strategy

B. corporate diversification strategy

C. business diversification strategy

D. product-differentiation strategy

23. When the value of the products or services a firm sells increases as a function of the number of business that the firm operates in, ________ are said to exist.

A. economies of scope

B. vertical economies

C. economies of scale

D. diseconomies of scope

24. ________ are complex sets of resources and capabilities that link different businesses in a diversified firm through managerial and technical know-how, experience and wisdom.

A. Managerial competencies

B. Core competencies

C. Competitive advantages

D. Core advantages

25. The most common organizational structure for implementing a corporate diversification strategy is the ________ structure.

A. matrix

B. U-form

C. M-form

D. functional