The Analysis of the Activity Map of a Successful Company

question 5

Multiple Choice

The analysis of the activity map of a successful company such as Southwest Airlines emphasizes how

• A)the organizational culture of Southwest Airlines is the key to the success of the organization.
• B)understanding of the profit pool in an industry indicates to companies where above-average returns can be earned.
• C)it is hard for rivals to match a configuration of integrated activities than to imitate a single activity.
• D)the primary and support activities of a successful company capture value all along the value chain.

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Definitions:

External User

Individuals or entities outside of a company who have an interest in the company's financial information for decision-making purposes, such as investors or creditors.

Accounting Information

Financial data and records about a company's transactions, financial performance, and condition.

Unlimited Personal Liability

A legal structure in certain business types where owners are personally responsible for all of the business's debts, without any limit on the amount for which they can be liable.

Corporate Form

A legal structure for businesses that is recognized as a separate entity from its owners, providing limited liability protection.