Which of the Following Statements Is True of a Production-Oriented

question 5

Multiple Choice

Which of the following statements is true of a production-oriented firm?

• A)It cannot survive when competition is weak.
• B)It believes that people will buy more goods and services if aggressive sales techniques are used.
• C)It can survive and even prosper when demand exceeds supply.
• D)It determines how to deliver superior customer value and implements actions to provide value to customers.

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Definitions:

Productive Capabilities

The capacity of a system, entity, or resource to produce goods or services of value, often influenced by technological, human, and physical resources.

Depreciation Rate

The percentage at which an asset's value decreases over time.

Straight-Line Rate

A fixed percentage used in the straight-line method of depreciation, representing how much of an asset's value is depreciated each year.

Asset's Book Value

The value of an asset as it appears on the balance sheet, calculated by subtracting accumulated depreciation from the asset's original cost.