A Company's Value Chain Consists of Two Broad Categories of Activities

question 76

Multiple Choice

A company's value chain consists of two broad categories of activities:

• A) consists of the primary activities that it performs in seeking to deliver value to shareholders in the form of higher dividends and a higher stock price.
• B) depicts the internally performed activities associated with creating and enhancing the company's competitive assets.
• C) consists of two broad categories of activities: the primary activities that create customer value and the requisite support activities that facilitate and enhance the performance of the primary activities.
• D) concerns the basic process the company goes through in performing R&D and developing new products.
• E) consists of the series of steps a company goes through to develop a new product,get it produced and distributed into the marketplace,and then start collecting revenues and earning a profit.

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Definitions:

Net Present Value

A financial metric that calculates the present value of all cash inflows and outflows associated with an investment, considering the time value of money.

Capital Budgeting

The process by which investors determine the value of potential investments or projects by assessing the cash inflows and outflows associated with them.

Conventional Cash Flows

A series of inward and outward cash flows over time where there is typically one initial outflow followed by several inflowing cash amounts.

Profitability Index

The Profitability Index is a financial metric that compares the present value of future cash flows generated by a project to the initial investment, used to assess the attractiveness of an investment.