Delphi Automobile Systems Manufacturers and Sells Satellite Communications Systems for Automobiles

question 151

Multiple Choice

Delphi Automobile Systems manufacturers and sells satellite communications systems for automobiles that connects you and your car to 24-hour-a-day emergency service,directs you to a destination,and enables you to order a movie while on the road.Delphi Automobile Systems MOST LIKELY uses a(n) __________.

• A)cost leadership strategy
• B)cost focus strategy
• C)differentiation focus strategy
• D)innovation strategy
• E)differentiation strategy

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Definitions:

Economic Life

The period over which an asset is expected to be productive or provide economic benefits.

Operating Lease

A lease agreement allowing a company to use an asset without ownership, with lease payments expensed as incurred.

Capital Leases

A lease agreement that grants the lessee almost all the risks and benefits of ownership of the asset leased.

Financial Lease

A long-term lease agreement where the lessee assumes the risks and rewards of ownership, often with the option to purchase the asset at the end of the lease term.