Sun Microelectronics Custom-Orders Processors,chips,and Circuit Boards for Sun's Desktop,server,and Storage

question 97

Multiple Choice

Sun Microelectronics custom-orders processors,chips,and circuit boards for Sun's desktop,server,and storage products.Sun doesn't actually make any of its microelectronic gear itself.Sun contracts the work to outside manufacturers,who in turn rely on components from their own subcontracted suppliers.The 150 suppliers involved in making and delivering Sun products have adopted mutually beneficial objectives and strategies that give Sun's customers value for their money.Sun's method of doing business is an example of a:

• A)double-deal.
• B)conflict of interest.
• C)restricted access.
• D)supply partnership.

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Definitions:

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset.

Incremental Cash Flows

The net additional cash flows generated by a company as a result of taking on a new project or investment.

Leasing vs. Buying

A comparative analysis between renting an asset for a certain period and purchasing the asset outright, each with its own financial implications.