A sidebar is a good place for your bottom line

Under which of the following condition is a firm likely to pursue backward integration?

A. There are a small number of suppliers B. A significant investment is needed to facilitate the specific transaction with suppliers (i.e., asset specificity) C. A firm needs to procure supplies at a very high frequency D. All of the above

A seller listed their house for sale on an "as is" basis. The seller disclosed to the listing agent that the plumbing was outdated and needed replacement. Later the seller discovered termite damage and notified the agent. If neither the seller nor the agent told a buyer about the damage., would the buyer be able to sue at a later date when the termite damage is found?

A. No, because the property was sold on an "as is" basis. B. No, because the buyer has the right to get the property inspected prior to closing. C. Yes, because the agent did not disclose the damage to the buyer when it was discovered. D. Yes, because the seller is responsible to repair all defects on the property on an "as is" basis.