Value-Chain Analysis Can Be Used to Determine If a Business

question 133

Multiple Choice

Value-chain analysis can be used to determine if a business is adding unique value in all of the following areas, except

• A) product research.
• B) human resources.
• C) process innovation.
• D) quality management.
• E) location decisions.

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Definitions:

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess profitability of investments.

Cash Inflows

Money received by a business from its operational, financing, or investing activities.

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.