When Companies Disperse Different Stages of the Value Chain to Those

question 102

Multiple Choice

When companies disperse different stages of the value chain to those locations around the world where perceived value is maximized or where the costs of value creation are minimized, companies create

• A) a differentiated organization.
• B) a location economy curve.
• C) economies of scale.
• D) a global web of value creation activities.

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Definitions:

Assets

Resources owned by a company or individual, including cash, inventory, properties, and equipment, that are expected to provide future economic benefits.

Liabilities

Financial obligations a company owes to outside parties, such as loans, accounts payable, and mortgages.

Assets

Company-owned valuables that offer economic benefits and are expected to provide future profit.

Revenue

The total amount of money received by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.