A Company Wants to Promote a New Line of Tools

question 51

Multiple Choice

A company wants to promote a new line of tools as easy-to-use and more adaptable than competitors' products. Which value chain function would the company use to develop customer perceptions of the utility of the new tools?

• A)design
• B)materials management
• C)production
• D)marketing
• E)customer service

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Definitions:

Capital Budgeting

The process of planning and evaluating investments in long-term assets and projects to generate value over time.

Straight-Line Depreciation

A method of depreciation where an asset's cost is evenly spread across its estimated useful life.

Net Present Value

A financial metric that evaluates the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows over a period.

Capital Budgeting

The strategy of organizing and overseeing a firm's extended investments in significant projects or assets.