One Reason a Computer Manufacturer May Make Its Own Microchips

question 115

Multiple Choice

One reason a computer manufacturer may make its own microchips rather than buy them is that

• A)it can maintain control over the quality during production
• B)the total cost of components is the same as the price of chips purchased from a chip manufacturer
• C)firms do not make high-quality microchips
• D)managers at the computer firm place a high value on their time
• E)firms do not produce goods for the market that can be made in-house

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Definitions:

Lend Money

The action of giving money to someone with the expectation that it will be paid back in the future, possibly with interest.

Note

A written promise or obligation to pay a specified sum of money to a specified person at a specified time.

Secondary Liability

Secondary liability refers to a legal obligation that arises not from direct involvement in a wrongful act, but from a failure to properly oversee or control the primary party responsible, or from benefiting from the act.

Negotiable Instrument

An official paper that assures the delivery of a particular monetary amount, which can be demanded at any moment or at an agreed-upon time, identifying the person who will make the payment.