Contracts of vertical integration

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Reference no: EM13886618

Determine whether the following transaction involves spot change, contracts of vertical integration:

a. A major oil company refines gasoline from crude oil wells that it owns.

b. Transcontinental, an interstate natural-gas pipeline, has a legal obligation to purchase a specified amount of natural gas per week from a well owned by Fred Smith in Enid, Oklahoma.

c. A cabinetmaker purchases a dozen wood screws from the local hardware store.

d. An electric utility purchases coal from an underground mine.

Reference no: EM13886618

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