Braintree Inc., a manufacturer of smartphones, has entered into a 15-year partnership with a software company to develop sophisticated operating systems and innovative mobile applications for its phones. This would mean that both the companies will have to mutually share their resources, knowledge, and capabilities to develop a superior product. What is the relationship between Braintree and the software company best referred to as in this scenario?
A. a leveraged buyout
B. an acquisition
C. a proprietorship
D. a strategic alliance
Answer: D
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In the two-period model, suppose a household's income in the first period is $50,000, income in the second period is $60,000, and the real interest rate is 25 percent. Draw a diagram showing the budget constraint. Now, suppose the real interest rate declines to 20 percent. Draw the new budget constraint. For the budget constraints you have drawn, be sure to show the values of the intercepts on each axis. If the household decides that its consumption in period 1 should always be one half of the present value of income, determine whether the household is worse off or better off because of the decline in the real interest rate. Show your work.
What will be an ideal response?
Internal reports on quality at the Acme Publishing Company generated the following information for the Trade Division for the first three months of the year: Total sales $1,000,000 Costs of quality: Prevention 44,000 Appraisal 47,000 Internal failure 36,000 External failure 64,000 Compute the total costs of quality as a percentage of sales
a. 2.4% b. 4.4% c. 12.6% d. 19.1%
Marketers often have huge amounts of information about their customers. What ethical issue should marketers include in their decisions regarding how to use this information?
What will be an ideal response?
Which of the following is not a source layer in the transportation model?
a. Machines b. Plants c. Cities d. Warehouses e. All of the above can serve as source layer in the transportation model.