Tangerine Inc

question 57

Multiple Choice

Tangerine Inc., a computer manufacturing company, makes all computer components in-house. It can be said that:

• A) Tangerine is likely to develop production expertise with minimum time and effort.
• B) Tangerine is likely to reduce its fixed costs.
• C) Tangerine is likely to achieve economies of scale.
• D) Tangerine is likely to have more control over production time frames and deliveries.

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Definitions:

Bond Discount

The variance between a bond's official value and the reduced price at which it is actually sold.

Present Value

Present value is a financial concept that describes the value of an expected income stream determined as of the date of valuation.

Lease Payments

Regular payments made by a lessee to a lessor in exchange for the right to use an asset, such as real estate or equipment.

Bonds Payable

Long-term liabilities representing money owed by an entity to bondholders, to be paid back at a specified future date with interest.