When Toyota Wanted to Secure a Long-Term Supply of Lithium,it

question 74

Multiple Choice

When Toyota wanted to secure a long-term supply of lithium,it had to create a bond of trust with an Australian company,Orocobre Ltd.Orocobre wanted to establish the bond of trust before making huge investments in specialized equipment required to extract the high-quality lithium.What did Toyota do to instill this trust?

• A) It offered Orocobre exposure to Toyota's proprietary information.
• B) It made a credible commitment by taking an equity stake in Orocobre.
• C) It acquired Orocobre as part of its backward vertical integration plans.
• D) It offered Orocobre franchising opportunities to sell hybrid vehicles.

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Definitions:

Cash Collections

The process of gathering and managing incoming cash payments from customers or clients.

Collection Procedures

The methods and processes used by a company to pursue and collect payments owed by customers.

Credit Sales

Sales made on credit, where the buyer agrees to pay the seller at a future date.

Economic Order Quantity

The optimal quantity of stock that minimizes the total holding costs and ordering costs in inventory management.