Some of Toyota's Competitive Advantage Is Due to Its Superior

question 112

Multiple Choice

Some of Toyota's competitive advantage is due to its superior ability to manage the design,engineering and manufacturing of its automobiles.Despite the fact that some of its products could be licensed for production by another company it does not do so because _____________.

• A) Toyota does not want to lose control over its technology
• B) Toyota are strong believers in the internalization theory
• C) Toyota does not want to share profits and it is a large enough company to enter every market
• D) another company could not be as efficient a producer of cars as Toyota
• E) all of these answers are correct

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Definitions:

External Financing

It refers to the funds a business obtains from outside sources, such as bank loans, venture capital, or issuing bonds or equity, to finance its operations or expansion.

Sales Increase

The situation where a company experiences growth in its revenue from the sale of goods or services over a specific period.

Percentage Of Sales

A financial ratio that compares a particular figure or metric to the total sales of a company.

Capital Intensity Ratio

A measure of how much capital is used in the production process, calculated as the ratio of total assets to sales.