The Part of an Industry's Value Chain That Is Most

question 74

Multiple Choice

The part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lie is called the company's

• A) functional crossroads.
• B) center of gravity.
• C) dynamic equilibrium.
• D) R&D intensity.
• E) economy of scope.

---

Definitions:

Net Income

The company's earnings post all deductions for expenses and taxes from its income.

Net Sales

The total revenue from sales after subtracting returns, allowances for damaged or missing goods, and discounts.

Return On Common Stockholders' Equity

A financial ratio that measures the amount of net income returned as a percentage of shareholders' equity, indicating the profitability of a company from the common shareholders' perspective.

Net Income

The remaining earnings of a corporation after deducting all costs, taxes, and expenses from its gross revenue.