The Same Automobile Company Produces Fiats and Ferraris

question 88

Multiple Choice

The same automobile company produces Fiats and Ferraris.The company builds an engine plant in China with low production costs for Fiats but not Ferraris.The probable reason is that ________.

• A)Fiat competes mainly on a focus strategy, whereas Ferrari competes mainly on a mass-market strategy
• B)Fiat competes mainly on a mass-market strategy, whereas Ferrari competes mainly on a focus strategy
• C)Ferrari faces global competitors in China, whereas Fiat competes in China mainly against Chinese competitors
• D)although Ferrari did not build an engine plant, it will use the same Fiat engines in its models

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Definitions:

Personal Line

A type of credit product that allows individuals to borrow up to a pre-approved limit on an as-needed basis.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a reference for other rates.

Loan Repayment

The process of paying back borrowed money, typically in installments over a set term.

T-Bill

Short-term government debt security with a maturity of less than one year.