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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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7 0
3 years ago
You are the chief financial officer for a firm that sells digital music players. Your firm has the following average-total-cost
Finger [1]

Answer:

False

Explanation:

Since for finding out whether the offer is accepted or not, first we have to determine the total cost at 600 number of players and for 601 number of players which is

The total cost of 600 players is

= 600 × $300

= $180,000

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= $180,901

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6 0
3 years ago
Haynes, Inc. obtained 100 percent of Turner Company's common stock on January 1, 2017, by issuing 10,000 shares of $10 par value
saveliy_v [14]

Answer:

a. $848,000

b. No

Explanation:

a. The calculation of consolidated equipment balance as of December 31, 2018 is shown below:-

Consolidated equipment balance = Equipment balance of Haynes + Equipment balance of Turner + Allocation based on fair value - Depreciation

= $500,000 + $300,000 + $5,000 - (($5,000 ÷ 5 × 2)

= $500,000 + $300,000 + $5,000 - $2,000

= $848,000

2. No it will not affect by the investment method applied by the parent.

6 0
3 years ago
Guy​ Ferrell, a student who lives in the country​ Paragon, observes that analysts are cutting their growth forecasts for the eco
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The correct answer to this open question is the following.

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5 0
3 years ago
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