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By controlling the business at each phase of a product'sdevelopment, vertical integration allowed abusiness to reducecosts

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Q: How did vertical intergration allow a business to reduce cost?
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How did vertical intergration allow business to reduce costs?

By controlling the business at each phase of a product'sdevelopment, vertical integration allowed abusiness to reducecosts


How did vertical integration allow business to reduce cost?

By controlling the business at each phase of a product's development, vertical integration allowed a business to reduce costs.


How did vertical integration allow a business to reduce costs?

by controlling the businesses at each phrase of a product development


What properties of water allow it to stick to the sides of a vertical glass?

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How can vertical integration allow a business to reduce cost?

Vertical integration of a business structure can reduce costs, depending on how quickly ideas that produce products develop. Let it be said that vertical business structures, can within themselves look different. Here is an example of one such structure that can be successful. Corporation A produces shoes, in order to do this it needs leather and factories. It owns it's own source of leather, rather than paying another company to buy the leather from. Corporation A also needs shoe designers. It has its own designer company for this purpose and thus saves money in buying designs. All shoe manufacturing is done in its own factories. It thus saves money by having another company do the manufacturing. The company must distribute the shoes in the wholesale market, and then its shoes are later in the retail marketplace. By owning and operating the shoe product from bottom to top, it saves funds by not having to pay other companies. This reduces overall costs significantly. The question does not ask the risks involved in vertical structures, so that can be addressed in another question.


How does a website help a business?

Websites provide advertising for the business, give information to customers, allow internet sales, and allow the customer to contact the business.


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Most creditors will require a personal guarantee before extending business credit to reduce risk; however, there are ways to avoid having to provide a personal guarantee. Establishing a business credit history, having a long history of doing business, and demonstrating sufficient cash flow are all ways that can allow a business to avoid providing a personal guarantee.


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"All online banks allow business checking. Most accounts come with business checking, but if your account does not come with it you may request it for your account."


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