Ford's Decision to Completely Redesign Its Ford Taurus Can Be

question 78

Multiple Choice

Ford's decision to completely redesign its Ford Taurus can be classified as a:

• A) corporate level strategy.
• B) business level strategy.
• C) functional level strategy.
• D) retrenchment strategy.
• E) stability strategy.

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Definitions:

Net Investment

The total amount spent by a company for purchasing new assets, after accounting for depreciation.

Gross Investment

The total amount spent on purchases of new capital and on replacing depreciated capital within an economy.

Net Investment

The sum of money used to purchase new capital assets, subtracting the depreciation from current capital assets.

Depreciation

The reduction in the value of an asset over time, due in particular to wear and tear.