Which of the Following Inputs Qualifies as "Strategic" Inputs That

question 31

Multiple Choice

Which of the following inputs qualifies as "strategic" inputs that merit forming an alliance relationship?

• A)High value inputs that make up a high percentage of one's total costs
• B)Inputs that do not differentiate one's product in the minds of customers
• C)Activities that require a lot of unskilled man power
• D)Activities that require no coordination in order to achieve the desired quality

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Definitions:

Capital Mix

Capital mix refers to the combination of debt and equity financing used by a company to fund its operations and growth.

Retained Earnings

The portion of a company's profits that is retained or kept in the company rather than paid out to shareholders as dividends.

Flotation Cost

Expenses incurred by a company during the issuance of new securities, including underwriting fees and legal costs.

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionally weighted, assessing investment risk and strategy.