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svetoff [14.1K]
4 years ago
11

Neon Electronics Inc. sourced touch screens required for its tablet computers, cell phones, and televisions from a manufacturer

in China. But the demand for such components was high globally, and the supplier could not meet the quality standards of Neon Electronics. Thus, Neon Electronics decided to set up its own unit to develop and manufacture the required touch screens. What does this scenario best illustrate?
A. crowdsourcing
B. new product development
C. backward vertical integration
D. conglomerate diversification
Business
1 answer:
Nataly_w [17]4 years ago
3 0

Answer:

C. backward vertical integration

Explanation:

Vertical integration is one in which the supply chain of a clothe producing company is owned by the

Backward integration is a type of vertical integration in which a firms starts to fill in the role it once designated to another in the manufacturing of its product. Backward vertical integration would see a company buying another to fulfill its needs as regarding production.

From the above question, it can be seen that due to the inability of the china firm to meet up with Neon Electronics Inc; it started to produce the touchscreens needed for the tablet computers.

Cheers.

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Convertible bonds are attractive to investors because a.they can be converted into stock at a future time. b.they carry a conver
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Answer:

a. they can be converted into stock at a future time.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.

Generally, the bond issuer is expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

A convertible bond can be defined as a type of bond that avails the bondholder the opportunity, right or obligation to convert the bond into a predetermined (fixed or specific) number of shares of common stock in the company issuing the bond. Thus, this feature or characteristics of convertible bonds make them attractive to bondholders (investors) because they can be converted into stock at a future time or at the issuer's option.

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3 years ago
If you were analyzing the consumer goods industry, for which kind of company in the industry would the constant growth model wor
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Answer:

Mature companies with relatively predictable earnings

Explanation:

Constant growth model is under the assumption that a company's dividend will grow at a constant rate indefinitely(forever). This makes more sense and hold is appropriate method of valuation for a mature company that has  relatively predictable earnings. Young companies on the other hand have fluctuating earnings making it appropriate to use non-constant growth model to value its dividends.

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3 years ago
In a given year, Jennifer earns $50,000 and spends $40,000. During the same period, Stcve earns $30,000 and spends $27,000. If J
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Answer:

The sales tax is regressive with respect to income

Explanation:

sales tax by Jennifer = 0.1*30000

                                   = 3000

tax/income = 3000/50000

                   = 6%

sales tax by steve = 0.1*27000

                                   = 2700

tax/income = 2700/30000

                   = 9%

The tax increases with decrease in income, it indeed is regressive on the whole.

Therefore, The sales tax is regressive with respect to income

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3 years ago
If the American company Stryker builds and operates a new factory in France, a. it engages in foreign direct investment. By itse
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FDIs requires cash commitment for investing in the foreign nation. However, because the assets created as a result of these investments are owned by the originating country, it increases the volume of assets the country has abroad leading to an increase in net capital outflow. Net Capital Outflow is the volume of capital investment made by a nation in other countries, less the capital investment made by other countries into the nation.

Therefore, when Stryker builds and operate a new factory in France, it engages in Foreign Direct Investment. By itself this action raises US net capital outflow.

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