Swaback Motors Told Its R&D Department That It Did Not

question 36

Multiple Choice

Swaback Motors told its R&D department that it did not matter what the motor they developed was like as long as it would fit into the engine housing and connect to the electrical and other mechanical parts.This is an example of

• A) organic technology.
• B) loose coupling.
• C) functional preference.
• D) default designing.

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Definitions:

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Interest

The charge for borrowing money or the return on invested capital, typically expressed as an annual percentage rate.

EBITDA Coverage Ratio

A financial metric that assesses a company's ability to pay off its debts, calculated by dividing EBITDA by total debt service costs.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance.