Raytheon Seeks to Source Its Purchases of Electric Component Parts

question 22

Multiple Choice

Raytheon seeks to source its purchases of electric component parts from countries where the expected performance of the components far exceeds the cost of the components.From this description,the ____ criterion is critical in Raytheon's electric component buying decision.

• A)cost-performance
• B)performance parity
• C)performance ratio
• D)cost-plus

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Definitions:

Assets

Resources owned or controlled by a person or business, which are expected to produce economic value or benefits in the future.

Common Stock

A form of security signifying part ownership in a corporation, which entitles the owner to vote and receive a portion of the company's earnings via dividends.

Accounts Receivable

Refers to the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Dividends

Payments made by a corporation to its shareholders from the earnings of the company.