What Was the Primary Benefit Local Motors Gained from Outsourcing

question 74

Multiple Choice

What was the primary benefit Local Motors gained from outsourcing manufacturing and design?

• A)They rapidly increased the number of employees working for the company.
• B)They raised money quickly to fund their development.
• C)They saved labor costs while improving efficiency.
• D)They were able to employ 3D design software.

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Definitions:

Acid-test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets including cash, marketable securities, and receivables.

Income from Continuing Operations

This refers to the earnings generated from the normal business activities excluding one-time transactions, discontinued operations, and other irregular items.

Loss on Discontinuance

A financial loss that occurs as a result of the cessation of a business unit or operation.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales.