Multiple Choice

Integrating into more industry value chain $$egments increases business risk if industry growth and profitability sour.

Vertical integration increases a firm's capital investment in the industry.

It greatly reduces the opportunity for capturing maximum scale economies and achieving the lowest possible operating costs.

$$ Integrating backward potentially results in less flexibility in accommodating shifting buyer preferences when a new product design doesn't include parts and components that the company makes in$-$house.