A Company's Value Chain Identifies

question 59

Multiple Choice

A company's value chain identifies:

• A) the steps it goes through to convert its net income into value for shareholders.
• B) the primary activities and related support activities it performs in creating customer value.
• C) the series of steps it takes to get a product from the raw materials stage into the hands of end users.
• D) the activities it performs in transforming its competencies into distinctive competencies.
• E) the competencies and competitive capabilities that underpin its efforts to create value for customers and shareholders.

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value remains the same.

Market Value

The present rate at which a company or asset is available for purchase or sale on the market.

Book Value

The net value of a company's assets minus its liabilities, often used to assess a company's financial health.

Dividend Income

Income received from owning shares in a corporation, typically paid out from the company's profits.