The practice of buying goods and services from other companies is commonly known as vertical integration.
Answer the following statement true (T) or false (F)
False
A company that uses vertical integration controls the full range of activities from acquiring raw materials to distributing goods and services. Outsourcing reduces the level of vertical integration, passing some of a company's control over its products to outside suppliers.
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The level of merchandise exports in 2013, worldwide, was
A. $12.3 trillion. B. $4.6 trillion. C. $18.8 trillion. D. $8.5 trillion. E. $23.4 trillion.
A company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $150,000. The present value of the future cash flows generated by the project is $145,000. Should they invest in this project?
A) yes, because the rate of return on the project exceeds the desired rate of return used to calculate the present value of the future cash flows. B) no, because the rate of return on the project is less than the desired rate of return used to calculate the present value of the future cash flows. C) no, because net present value is +$5,000 D) yes, because the rate of return on the project is equal to the desired rate of return used to calculate the present value of the future cash flows.
The purpose of organizational structure is to appeal to external competitors.
Answer the following statement true (T) or false (F)
Capacity utilization is defined as the ratio of
A) actual output to actual capacity. B) actual output to design capacity. C) design capacity to actual capacity. D) actual capacity to actual output.