Apple Computer Is More Likely to Continue to Use Input

question 69

Multiple Choice

Apple Computer is more likely to continue to use input markets rather than manufacture its own inputs internally when

• A)the quality of inputs is difficult to determine
• B)switching among input suppliers is easy
• C)there are very few firms producing the input
• D)the input is difficult to identify and define
• E)transaction costs go up

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest of shareholders.

Book Value Per Share

A measure used to gauge a company's financial health, calculated by dividing total shareholder's equity minus preferred equity by the number of outstanding common shares.

Stock Dividend

A payment made to shareholders in the form of additional shares, rather than cash, reflecting the company's decision to reinvest the profit.

Liability

A company's legal financial debts or obligations that arise during the course of business operations.