When Daimler and BMW Pooled Resources to Develop Standardized Auto

question 125

Multiple Choice

When Daimler and BMW pooled resources to develop standardized auto components the supply-chain strategy could best be described by

• A) keiretsu
• B) virtual companies
• C) joint venture
• D) vertical integration
• E) few suppliers

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Definitions:

Present Value

Present value represents the current value of a future amount of money or series of cash flows, discounted at a certain rate of return.

Discount Rate

In finance, the rate used to discount future cash flows to their present value, essentially reflecting the time value of money and risk.

Compounded Monthly

A method of calculating interest where the accrued interest is added to the principal sum each month, leading to an increase in the amount of interest earned over time.

Compounding

The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.