Which of the Following Statements Regarding the Value Chain Is

question 122

Multiple Choice

Which of the following statements regarding the value chain is true?

• A) Service firms benefit from the value chain more than manufacturing firms.
• B) Value chain components do not overlap.
• C) Value is not created until after the research and development stage.
• D) Administrative functions are not included as a separate component of the value chain.

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business, whichever is longer.

Current Assets

Financial resources or inventory that are readily convertible into cash or are expected to be used up through the normal operations of the business within one year or one cycle of operation.

Generally Accepted Accounting Principles

The standard framework of guidelines for financial accounting used in any given jurisdiction; commonly known as GAAP.

Inventory Level

The quantity of goods and materials on hand available for sale or production at any given time.