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Mariulka [41]
3 years ago
8

TerraLoc competes in the market for global positioning devices and services. The company manufactures its own GPS units, which a

re smaller than those of any other competitor and include a proprietary battery that lasts 200% longer than any other competitor's battery and that TerraLoc manufacturers on-site. TerraLoc also has developed proprietary software that is much faster and more precise than that of any competitor. When developing the proprietary battery, TerraLoc decided to manufacturer the battery in-house to reduce the possibility that the company it outsourced the battery manufacturing to might reverse engineer the battery and sell a similar product to competitors. This possibility was especially troubling given that the company expected a significant increase in demand due to the improved battery life. Additionally, TerraLoc sells its products and services through its own direct sales force to ensure that its representatives highlight the longer battery life of TerraLoc's units.
TerraLoc's decsion to manufacture the battery in-house is most consistent with which theory(s) of vertical integration?

a. Firm capability-based explanations
b. Alliance-based explanation
c. Opportunism-based explanations
d. Flexibility-based explanations
Business
1 answer:
faust18 [17]3 years ago
6 0

Answer:

The correct answer is the option A: firm capability-based explanations.

Explanation:

To begin with, given the fact that the company decided to manufactured the battery in-house in order to reduce the possibility of helping other competitors when using an outsourced manufacturer then the company is using its firm capability in order to achieve the goal of manufacturing that component of the final product. Therefore that if the company would not have the resources and capability of doing it then it would necessary outsourced the manufactured of it.

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The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet showed
jeka57 [31]

Answer:

$1,290,000

Explanation:

Given that,

Cash flow to creditors = -$85,000

Cash flow to stockholders = $170,000

Firm’s net capital spending for 2018 = $1,250,000

Firm reduced its net working capital investment by $45,000

Cash Flow from Assets:

= Cash Flow to Creditor + Cash Flow to Stockholders

= -$85,000 + $170,000

= $85,000

Cash Flow from Assets = OCF - Net Capital Spending - Change in Net Working Capital

$85,000 = OCF -  $1,250,000 - (-$45,000)

OCF = $85,000 + $1,250,000 - $45,000

        = $1,290,000

3 0
3 years ago
Measuring assets and liabilities based on their original transaction value is an example of:__________
nignag [31]

Answer: historical cost

Explanation:

8 0
2 years ago
Ray's Pizzeria is considering the addition of a 5th worker if this increases profit. Pizza sales increased from 300 per day to 3
Anika [276]

Answer:

60 pizzas

40 pizzas

Explanation:

Marginal product measures the change in output as a result of a change in input by one unit

Marginal product = change in output / change in input

Marginal product for the 4th worker

Change in output = 360 - 300 = 60 pizzas

Change in input = 4 - 3 = 1 worker

Marginal product = 60 / 1 = 60

Marginal product for the 5th worker

Change in output = 400 - 360 = 40 pizzas

Change in input = 5 - 4 = 1

Marginal product = 40 / 1 = 40

It can be seen that marginal product decreased from 60 to 40 when the 5th worker was added. This illustrates diminishing marginal returns.

The law of diminishing returns says as more units of a variable input is added to a fixed income of production, output might increase at a point but after some time total output would increase at a decreasing rate and marginal product would be decreasing.

6 0
3 years ago
LRQ Inc. issued bonds on April 18, 2006. The bonds had a coupon rate of 5.5%, with interest paid semiannually. The face value of
ankoles [38]

Answer:

$857

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Both of these cash flows discounted and added to calculate the value of the bond.

According to given data

Face value of the bond is $1,000

Coupon payment = C = $1,000 x 5.5% = $55 annually = $27.5 semiannually

Number of periods = n = (April 18, 2036 - April 18, 2020) years x 2 = 16 x 2 period = 32 periods

Market Rate = 7% annually = 3.5% semiannually

Price of the bond is calculated by following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond = 27.5 x [ ( 1 - ( 1 + 3.5% )^-32 ) / 3.5% ] + [ $1,000 / ( 1 + 3.5% )^32 ]

Price of the Bond = $524.29 + $332.59 = $856.98 = $857

8 0
3 years ago
Edie Manson worked the following schedule: Monday, 8 hours; Tuesday, 9 hours; Wednesday, 7 hours 48 minutes; Thursday, 8 hours;
melomori [17]

Answer:

hundredth = 40.48 which is 40.8

Quarter = 40.48 which is 40.75

Explanation:

The total number of hours worked in all days of the week for Manson is 40 hours 48 minutes.

In hudredth time the conversion of 40.48 equals 40.8 but in quarter time to round time to nearest quarter hour, we have to round the times within 7 minutes of a 15 minute mark to that 15 minutes.  Since 48 minutes are only 3 minutes more than 45 minutes, we round back to 45 minutes which is 0.75 in decimal.

Hence the hundredth hour timing is preferred for Edie Manson because it shows a higher time for hours worked and potentially more pay.

4 0
3 years ago
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