Fony Corp, Headquartered in China, Is a Leading Manufacturer of Electronic

question 76

Multiple Choice

Fony Corp., headquartered in China, is a leading manufacturer of electronic devices and solutions intended for professional markets. The company is considering upgrading the technology currently being used at Fony's manufacturing facility, located in Guangdong, that specializes in producing lithium-ion batteries, which are used to power laptops, cameras, cell phones, and other similar gadgets. The new technology is expected to increase efficiency levels and will also allow for greater adherence to quality standards.
-Which of the following, if true, would most strengthen the argument that Fony Corp. should upgrade its technology?

• A) The market for consumer electronics such as laptops, cameras, cell phones, and other similar gadgets is in the late maturity stage.
• B) Fony will be able to recover the cost of the new technology within eight years.
• C) Fony's main client account is at risk after the client had to recall nearly 2 million notebooks owing to defective batteries.
• D) The existing technology is currently functioning at the optimal level and the cost of maintenance is minimal.
• E) Fony last upgraded its technology six years ago and it has an adequate budget to fund the acquisition.

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