Figure 2-6 General Motors Recently Approved for Production the Cadillac Converj, an Production

question 109

Multiple Choice

Figure 2-6

General Motors recently approved for production the Cadillac Converj, an electric car based on its Chevy Volt. The Converj will feature a "Generation 1.5 Voltec" powertrain, with a hybrid engine that runs on a combination of electricity and gasoline. Assume GM chooses to produce both hybrid-engine vehicles and gasoline-engine vehicles for its Cadillac brand. Figure 2-6 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
-Refer to Figure 2-6.Assume a technological advancement greatly reduces the cost to produce hybrid-engine vehicles.This is best represented by the

• A) movement from E to F in Graph A.
• B) movement from G to H in Graph B.
• C) movement from K to L in Graph C.
• D) movement from H to J in Graph B.

Assess and respond to ethical considerations in managerial decisions related to budgeting and performance evaluation.

Understand how to calculate and interpret return on investment (ROI).

Grasp the concepts and purposes of different types of budgets, including static and flexible budgets.

Identify and distinguish between various management and control concepts such as budgetary control, responsibility accounting, and management by exception.

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Definitions:

Primary Liability

The direct and immediate responsibility to fulfill an obligation or repay a debt, without necessarily having recourse against others for reimbursement.

Secondary Liability

Secondary Liability refers to the legal responsibility of a third-party for the actions of another, such as a parent company being liable for the actions of its subsidiary.

Party Authority

The legal power or capacity of a party to enter into a binding contract or agreement.

Act On Behalf

The action of representing or making decisions for someone else or another entity.