Examlex

Solved

TerraLoc Competes in the Market for Global Positioning Devices and Services

question 50

Multiple Choice

TerraLoc competes in the market for global positioning devices and services. The company manufactures its own GPS units, which are smaller than those of any other competitor and include a proprietary battery that lasts 200% longer than any other competitor's battery and that TerraLoc manufacturers on-site. TerraLoc also has developed proprietary software that is much faster and more precise than that of any competitor. When developing the proprietary battery, TerraLoc decided to manufacturer the battery in-house to reduce the possibility that the company it outsourced the battery manufacturing to might reverse engineer the battery and sell a similar product to competitors. This possibility was especially troubling given that the company expected a significant increase in demand due to the improved battery life. Additionally, TerraLoc sells its products and services through its own direct sales force to ensure that its representatives highlight the longer battery life of TerraLoc's units.
-TerraLoc's development of the new battery technology is likely to


Definitions:

Accounts Receivable

Funds that customers owe to a business for products delivered or services rendered but have not been paid for yet.

Inventory

The raw materials, work-in-progress products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Auction Markets

Markets where buyers bid for products or services, with the highest bidder winning the item, such as stock exchanges.

TSX

The Toronto Stock Exchange, which is the largest stock exchange in Canada and the ninth largest in the world by market capitalization.

Related Questions