According to "Essentials of Business" by Magal,why Did Apple Inc

question 13

Multiple Choice

According to "Essentials of Business" by Magal,why did Apple Inc.decide to have its products made by an outside contract manufacturer?

• A)So it could stick to its core competency of designing easy-to-use and engaging hardware and software products.
• B)Because the contract manufacturer used cheaper labor which allowed Apple to cut costs and increase profits.
• C)Because the theories of globalization suggested it was a good strategy.
• D)To provide a higher quality product.

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Definitions:

Net Cash Flows

The total cash generated or lost by a business over a period of time, considering both income and expenditures.

Investing Activities

This section of the cash flow statement details transactions involving the purchase and sale of long-term investments and property, plant, and equipment.

Long-Term Note

A debt obligation that extends for a period beyond one year, often used for significant investments or purchases.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain capital assets. It's an important measure of financial health.