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Backward integration, which allows the diversifying firm to exercise more control over the quality of the supplies being purchased, is a type of vertical diversification.

Backward integration, which allows the diversifying firm to exercise more control over the quality of the supplies being purchased, is a type of vertical diversification.

True or False.

2. A capability is the capacity for a set of resources to perform a task or an activity in an integrative manner.

True or False.

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