Which of the Following Statements Is True of Operations Management

question 3

Multiple Choice

Which of the following statements is true of operations management (OM)

• A) The application of the concepts and methods of OM is limited to the technology industry.
• B) OM is the only function by which managers can directly affect the value provided to all stakeholders.
• C) The activities involved in OM focus on creating value solely for external customers.
• D) OM and its principles are exclusively applicable to firms that produce tangible products.

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Definitions:

Property Rights

Legal rights to possess, use, and dispose of assets, including real estate, intellectual property, or physical goods, crucial for the functioning of markets and economies.

Government Regulation

Rules and guidelines established by the government aimed at influencing or controlling certain activities within the society or economy.

Total Surplus

The total net gain to society from a market transaction, which is the combination of consumer surplus and producer surplus.

Consumer Surplus

The gap between the aggregate amount buyers are willing and able to spend for a good or service, versus what they actually spend.