Amazon SOA-C02

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AWS Certified SysOps Administrator - Associate (SOA-C02)

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AWS Certified SysOps Administrator - Associate (SOA-C02)
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A firm that wishes to obtain the benefits of vertical integration may acquire a minority common stock interest in a supplier or customer firm. This arrangement is most appropriately described as:
A. Partial integration.
B. Quasi-integration.
C. Contract integration
D. Tapered integration
Answer: B
Quasi-integration is something more than a long-term contract and less than full ownership. It may be achieved by a minority common stock interest, debt guarantees, cooperation in R&D, an exclusive dealing arrangement, etc. Buyer and seller may, as a result, have aspecial community of interest leading to lower costs, smoothing of supply/demand fluctuations, or mitigating against bargaining power. Quasi-integration may avoid commitment to an adjacent business, with its investment and management requirements. But many benefits of full integration may not be achievable in this wav.

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