Which of the Following Statements Concerning the Value Chain Is

question 95

Multiple Choice

Which of the following statements concerning the value chain is false?

• A) The goal of a value chain is to find areas where a company can either add value or reduce cost.
• B) The value chain focuses on the entire production process, as well as the sale of the product and service after the sale.
• C) If a company cannot compete in a specific area of the value chain, it might outsource that portion of the value chain to another entity which can perform it better.
• D) Successful firms are ones that operate within the entire value chain, thereby overseeing every aspect of the value chain for the customer.

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Definitions:

Extraordinary Returns

Profits that significantly exceed the norm or benchmark, often due to unusual or rare events affecting the investment.

Net Present Values

The calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate to determine if it will yield a positive return.

Historical Record

Documentation or archives of past events, transactions, or values, often used for reference.

Small Stocks

Shares of companies with relatively small market capitalization.