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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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Levin Furniture buys a living room set with a $4,000 list price and a 55% trade discount. Freight (FOB shipping point) of $50 is
Zolol [24]

Answer:Delivered price=$1,814

Explanation:

List Price = $4,000

Trade  discount = 55%

Price after discount = $4,000 - 55% x $4000

$4000- $2,200 =  $1,800

if Levin pays within 10 days he will have a discount of 2 %, which he did

Therefore 2% x $1800 = $36

Delivered price =   $1800 -$36+ freight charges ( shipping)

$1800 -$36 + $50=$1814

5 0
3 years ago
Jay is an 21 year old college senior. He reads on a financial blog that interest rates are being lowered by the Federal Reserve.
IceJOKER [234]

Answer:

A.

Explanation:

6 0
3 years ago
Read 2 more answers
Vandelay Industries stock has a 50% chance of producing a 20% return, a 30% chance of producing a 8% return, and a 20% chance of
Yanka [14]

Answer:

8.2%

Explanation:

Calculation to determine the expected rate of return

Expected rate of return= (.50 (.20)) +(.30(.08)) + (.20*(-.21)

Expected rate of return=0.1+0.024+(0.042)

Expected rate of return=.082*100

Expected rate of return=8.2%

Therefore the expected rate of return is 8.2%

3 0
3 years ago
Understanding how income is distributed within and across populations informs firms of different groups':_____.
LuckyWell [14K]

Understanding how income is distributed within and across populations informs firms of different groups purchasing power.

This is further explained below.

<h3>What is purchasing power.?</h3>

Generally, The buying power of a certain currency is defined as the number of goods and services that can be acquired by spending a specific amount of that money.

For illustration purposes, in the 1950s, if one went to a store with one unit of cash, they would have been able to buy whatever was on the shelf.

Income: money that is earned, often on a regular basis, as a direct or indirect consequence of one's job or investing activities.

In conclusion, Firms need to have an understanding of the distribution of income both within populations and between populations in order to determine the buying power of various groups.

Read more about purchasing power.

brainly.com/question/14892961

#SPJ1

4 0
2 years ago
ValiantCorp is a C corporation that earned $ 3.90$3.90 per share before it paid any taxes. ValiantCorp retained​ $1 of after tax
madam [21]

Answer: Option(A) is correct.

Explanation:

Earnings before tax = $3.90

Tax rate on dividend payment = 12.5%

Corporate Tax rate = 35%

Shareholder holds = 100,000 shares

Earnings after tax = $3.90 × (1 – 35%)

                              = $2.535

Valiant Corp retained​ $1 of after tax earnings for​ reinvestment,

Therefore,

Value available for dividend payment = $2.535 - $1

                                                                = $1.535

After tax dividend received by shareholder for one share = $1.535 × (1 – 12.50%)

                                                                                                 = $1.343125

Total dividend received by shareholder = 100,000 × $1.343125

                                                                      = $134,312.50

7 0
4 years ago
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