When Companies Engage in Value-Creating Activities, They Do So by

question 80

Multiple Choice

When companies engage in value-creating activities, they do so by

• A)focusing on exploiting a company's best-executed operating strategy.
• B)concentrating on efficient performance of the company's primary value chain activities.
• C)concentrating on minimizing the costs associated with the design of a product or service.
• D)drawing on specific company resources and capabilities that underlie and enable the activity.
• E)focusing on working with forward-channel allies to develop capabilities to outmatch the capabilities of rivals.

---

Definitions:

Coupon Bond

A type of bond that pays the holder a fixed interest rate (the coupon) at regular intervals until the bond matures, when the principal amount is repaid.

Zero-Coupon Bond

A debt security that doesn't pay interest (a coupon) but is traded at a deep discount, offering profit at maturity when the bond is redeemed for its full face value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates.

Yield To Maturity

The total return anticipated on a bond if it is held until the date it matures, including all payments of principal and interest.