Which of the Following Is NOT True About Value Chain

question 50

Multiple Choice

Which of the following is NOT true about value chain analysis?

• A) The value chain is a template the firm can use to understand its cost position.
• B) This analysis helps to identify the single most important means that will facilitate strategy implementation.
• C) Both primary and support activities should be analyzed.
• D) It can be used to guide the implementation of business-level strategies.

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Definitions:

Profit Margin

A financial metric that measures the percentage of revenue remaining after deducting all expenses, indicating the efficiency and profitability of a company's operations.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing debt or equity financing.

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage, calculated by dividing total liabilities by total assets.

Selling And Administrative Expenses

Combined costs related to the selling of products and the administration of a business, excluding production costs.