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:

Interest-Rate Risk

The potential for investment losses due to fluctuations in interest rates.

Yield To Maturity

The total return anticipated on a bond if held until its maturity date, taking into account its current market price, par value, coupon interest rate, and time to maturity.

Coupon Bond

A type of bond that pays the holder interest payments at fixed intervals until maturity, when the principal is repaid.