In What Ways Did the Toyota and General Motors Joint

question 60

Multiple Choice

In what ways did the Toyota and General Motors joint operation, New United Motor Manufacturing Incorporated, benefit the two firms?

• A) NUMMI offered Toyota a lower-risk means of entering the U.S. market
• B) The venture offered GM the chance to learn Japanese management
• C) The venture offered GM the chance to learn Japanese production techniques
• D) NUMMI offered both GM and Toyota economies of scale in manufacturing
• E) All of the above

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Definitions:

Common Stock

Equity ownership in a company, granting holders voting rights and a share in the company’s profits through dividends.

WACC

A calculation known as the Weighted Average Cost of Capital determines a corporation's capital costs by proportionally weighting different categories of capital.

Flotation Costs

Expenses incurred by a company in issuing new securities, including underwriting, legal, and registration fees.

Tax Rate

The rate at which taxes are applied to a person or company's income.