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Sources of cost that vertical integration

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Reference no: EM131395282

Consider firm organization:

a. Briefly explain why corporations with sufficiently diffused ownership are typically governed by a board of directors and why this board typically includes members from outside of the corporation.

b. Identify the three sources of cost that vertical integration is intended to mitigate or remove. However, no firm is fully integrated, implying there is a cost to vertical integration. Identify this cost and briefly relate it to firm size and scope.

Reference no: EM131395282

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