Value-Creating Primary Activities Include

question 107

Multiple Choice

Value-creating primary activities include

• A) purchasing raw materials and supplies.
• B) developing an appropriate corporate structure.
• C) selecting appropriate distribution channels.
• D) planning corporate strategy and setting goals.

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Definitions:

Required Rate

The minimum return that investors expect to earn when they invest in a project, often used as the discount rate in capital budgeting.

Straight-line Depreciation

A method for dispersing the cost of a physical asset across its useful life in even annual allocations.

Discounted Payback

A capital budgeting method used to determine the profitability of an investment by calculating the time it takes for the present value of cash flows to cover the initial investment cost.

Annual Cash Flows

The total amount of money being transferred in and out of a business, considered on a yearly basis.