How do firms benefit from vertical integration?

How do firms benefit from vertical integration?

Vertical integration allows firms to reduce organizational complexity and administrative costs

Firms that vertically integrate will have increased strategic flexibility when faced with technological changes

Firms that vertically integrate do not have to make transaction$-$specific investments

Vertical integration allows firms to increase operational efficiencies through improved coordination of adjacent value chain activities

Which of the following stakeholders of a company would most likely be responsible for decisions influencing a corporate strategy?

The first$-$line employees

The creditors

The chief executive officer

The middle manager