A Linked Set of Value-Creating Activities Beginning with Basic Materials

question 108

Multiple Choice

A linked set of value-creating activities beginning with basic materials provided by suppliers and ending with distributors getting the final product into the hands of the ultimate consumer is called a

• A) value chain.
• B) continuum of sustainability.
• C) strategic capability.
• D) fully integrated activity set.
• E) strategic group.

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Definitions:

Payback Period

The amount of time it takes for an investment to generate enough cash flow to recover its initial cost.

Internal Rate

Typically refers to the Internal Rate of Return (IRR), a financial metric used to estimate the profitability of potential investments.

Payback Period

The length of time it takes for an investment to generate enough cash flow to recover its initial cost.

Salvage Value

The expected remaining valuation of an asset after its service life has ended.