An Advantage of Engaging in In-House Production of Products and Components

question 35

Multiple Choice

An advantage of engaging in in-house production of products and components is that

• A) the firm will have fewer subunits to control by making products in-house.
• B) it will help the firm capture more orders from other countries.
• C) it enables a firm to protect the proprietary technologies that it has.
• D) firms can make better use of the location advantages of certain countries.

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly entitlements to dividends.

Takeover Bid

An offer made by an individual or a company to acquire a controlling stake in another company by buying its shares at a specified price.

Wealth Gains

The increase in the financial assets and resources owned by individuals, companies, or countries, indicating a sign of financial health and prosperity.

Divestiture

The process of selling off a subsidiary company or business division.