Anna Potts Is Putting Together a Training Session About Value

question 96

Multiple Choice

Anna Potts is putting together a training session about value chain components. Which of the following would be a good example of a cost for the component of distribution?

• A) Advertising
• B) Warranty repairs
• C) Vendor certification
• D) Website creation, hosting, and maintenance

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used to assess the company's worth in financial analysis.

Present Value Factor

Present value factor is a multiplier used in calculating the present value of a future sum of money or stream of cash flows, given a specified rate of return.

Market Rate

The prevailing interest rate available in the marketplace for instruments of similar risk and maturity.

Down Payment

An initial payment made when something is bought on credit.