A Well-Functioning Value Chain Should Involve

question 20

Multiple Choice

A well-functioning value chain should involve:

• A) a series of consecutive steps that add value to inputs right up to the point that finished goods or services are delivered to the customer.
• B) a series of steps done all at once and delivered as cheaply as possible.
• C) a production manager to keep watch over the human resource people.
• D) a computer-integrated manufacturing system.
• E) many levels of management.

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Definitions:

Diversification

A risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to reduce exposure to any single asset or risk.

Risk-Averse Investors

Investors who prioritize minimizing risk over maximizing returns, often choosing safer, lower-yield investments.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.