Elimination of Low-Value-Added Activities in a Firm Should

question 49

Multiple Choice

Elimination of low-value-added activities in a firm should:

• A)Be discouraged because of potential harmful effects.
• B)Not affect customer value.
• C)Not have priority because low-value-added activities have little effect on a firm's performance.
• D)Have priority only when a firm is operating at a loss.
• E)Happen naturally if the firm is well-managed.

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Definitions:

Fraud

Wrongful or criminal deception intended to result in financial or personal gain.

Tax Evasion

The illegal practice of not paying taxes by individuals or businesses by not reporting income, reporting expenses not legally allowed, or by not paying taxes owed.

Money Laundering

The illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to be earned legally.

Federal Agencies

Specialized organizations within the federal government, each with specific responsibilities and authority in areas such as health, safety, and environmental protection.