The Consolidation of the World Automobile Manufacturing Industry Can Be

question 22

Multiple Choice

The consolidation of the world automobile manufacturing industry can be explained partly by:

• A)The growing market for compact cars
• B)The harshness of international competition
• C)The power of the Japanese manufacturers
• D)The consequence of the escalating costs of new car development, incapable of being borne by smaller players.

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Definitions:

Fixed Expenses

Fixed expenses are costs that do not change with the volume of output produced by a company, such as rent or insurance.

Operating Results

The financial outcomes of a company's core business operations, often represented by its income or loss from operations before interest and taxes.

Financial Advantage

A benefit or edge a person or business has that allows for better financial performance or opportunities than competitors.

Fixed Manufacturing Overhead

Costs associated with the production that do not vary with the level of output, including salaries of managers and rent of the factory.