The "Value Additivity Principle" Means That the ____

question 88

Multiple Choice

The "value additivity principle" means that the ____.

• A) firm should accept all projects with a positive net present value
• B) firm's value is the sum of the value of all the projects undertaken
• C) firm will grow through the addition of new projects
• D) positive net present value is added to the firm's net worth

---

Definitions:

Segmentation, Targeting, And Positioning

A marketing strategy that involves dividing a broad market into subsets of consumers, determining which segment(s) to pursue, and implementing strategies to appeal to them.

Subcultures

Groups within a larger culture that exhibit distinct values, norms, and behaviors not shared by the broader society.

Joint Ventures

Business arrangements where two or more parties agree to pool their resources for a specific task, project, or business activity, sharing profits, risks, and control.

Limiting Outsiders' Control

A strategy employed by companies to prevent external parties from gaining too much influence or control over their operations, often through restructuring ownership or voting rights.