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:

Common Stock

A form of corporate equity ownership, a type of security that represents a fraction of ownership in a corporation, giving holders voting rights and a share in the company’s profits.

Dividend Payout Ratio

The fraction of net earnings a firm pays out to its shareholders as dividends, showing the portion of earnings distributed relative to the amount retained.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.

Net Income

The total profit of a company after all expenses, including taxes, have been deducted from revenues.