Cost Reduction, Improvement of Company Focus, and Freeing Assets from Noncore

question 328

Multiple Choice

Cost reduction, improvement of company focus, and freeing assets from noncore activities are among the results achieved through effective implementation of:

• A) supply chain management.
• B) service supplier management.
• C) collaboration.
• D) outsourcing.

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Definitions:

Gross Margin

The difference between revenue and cost of goods sold divided by revenue, expressed as a percentage, indicating the percentage of sales revenue that turns into profit.

Shareholder Wealth

The overall value that shareholders gain from their investment in a company, often measured by stock price appreciation and dividends received.

Free Cash Flows

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Sole Proprietorship

A business owned by one individual.