The Difference in Managerial Theories Can Have a Large Impact

question 4

Multiple Choice

The difference in managerial theories can have a large impact on the success or failure of businesses.In the automobile industry,what effect has the difference in assumptions between U.S.and Japanese manufacturers had on the market?

• A) The Japanese market was so small they needed to expand to reach economies of scale.
• B) Lower fuel prices in the U.S. have yielded a sustained competitive advantage for U.S. firms thus far in the 21^st century.
• C) Fuel pricing differences have pushed the market to competitive parity.
• D) Higher gas prices in Japan drove the market toward more fuel-efficient products sooner than in the U.S.

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Definitions:

Compounded Continuously

The process of calculating interest on an investment or loan where the interest is reinvested and earns additional interest constantly over time.

Interest Rate

The fee a lender imposes on a borrower for utilizing assets, represented as a proportion of the principal sum.

Present Value

Today's monetary equivalent of a future amount of money or cash flow sequences, using a specified rate of return.

Discount Rate

In the realm of discounted cash flow analysis, this interest rate is used to calculate the present value of expected future cash flows.