Differentiate Between Primary and Support Activities That Create Value for a Company's

question 108

Essay

Differentiate between primary and support activities that create value for a company's customers.How can managers determine whether an activity enhances customer value?

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Definitions:

Operating Income

The profit earned from a firm's core business operations, excluding deductions of interest and taxes.

Investment Turnover

A measure of a company's efficiency in using its investments to generate sales, calculated as sales divided by the average value of investments.

Profit Margin

The percentage of revenue that remains as profit after all expenses have been subtracted from sales.

Investment Turnover

Investment turnover measures the rate at which a company or fund buys and sells its portfolio of investments, helping to understand its trading activity level and potential profitability.