The potential advantages of Tesla's backward vertical integration strategy include
A. increased business risk for Tesla because it can control a larger portion of the overall industry value chain.
B. increased vulnerability to Tesla from powerful suppliers (who may be inclined to raise prices at every opportunity).
C. moderately increased risks to Tesla of disruptions in obtaining crucial components or support services.
D. enhancement of Tesla's differentiation capabilities and perhaps achieving a differentiation-based competitive advantage.
E. reduced costs.
Answer: D
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A company purchased ten delivery vehicles at a cost of $20,000 each and used the group depreciation method. Which of the following entries would be correct when recording the subsequent sale of a vehicle for $8,500 (group accumulated depreciation is $88,000)?
A) Cash 8,500Accumulated Depreciation 8,800Vehicles 17,300 B) Cash 8,500Accumulated Depreciation 11,500Vehicles 20,000 C) Cash 8,500Vehicles 8,500 D) Cash 8,500Accumulated Depreciation 8,800Loss on Sale 2,700Vehicles 20,000
The current trend is to distinguish not-for-profit organizations into ______ and governmental organizations.
a. pro-governmental b. nongovernmental c. religious d. charity
Delia's is a clothing retailer that targets teenage girls. It runs coordinated promotions for its catalogs, its website, and its retail outlets. Delia's works to make sure its public relations activities as well as its sales promotions harmonize with its advertising in all venues. From this information, you can infer that Delia's is using ________.
A. mass communication B. stealth marketing C. word-of-mouth marketing D. viral marketing E. integrated marketing communication
Skimming pricing refers to
A. setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product. B. setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it. C. setting a low initial price on a new product to appeal immediately to the mass market. D. the practice of replacing promotional allowances with higher manufacturer list prices. E. setting the lowest initial price possible when introducing a new or innovative product in order to skim sales from competitors.