Firms Can Create ________ When They Are Able to Perform

question 6

Multiple Choice

Firms can create ________ when they are able to perform value chain activities more effectively or efficiently than their competitors.

• A) consumer loyalty
• B) core competencies
• C) logistical strengths
• D) competitive advantage

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Definitions:

Capital

Refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories and other manufacturing facilities.

Labor

The physical and mental effort used in the production of goods and services.

Slope

In mathematics and economics, it represents the rate at which a variable changes over the change in another variable, often depicted as a line on a graph.

Absolute Value

A mathematical term describing the magnitude of a number regardless of its sign; the distance of a number from zero on the number line.