To Take Advantage of Cross-Business Value Chain Relationships and Strategic

question 120

Multiple Choice

To take advantage of cross-business value chain relationships and strategic fit and turn them into a competitive advantage requires that companies determine whether there are opportunities to strengthen the business, which includes such tasks as all of the following, EXCEPT

• A) the transferring of valuable resources and capabilities from one business to another.
• B) combining related value chain activities of different businesses to achieve lower costs.
• C) forcing cultural independence, operating diversity, and sophisticated analytical responsibility on the businesses to ensure compatibility with the corporate overhead identity.
• D) sharing the use of powerful and well-respected brand names across multiple businesses.
• E) encouraging knowledge-sharing and collaborative activity among the businesses.

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Definitions:

Equity Transaction

Transactions that affect the ownership interest of shareholders in a company, including issues, buybacks, and sale of shares.

Incremental Costs

Costs directly associated with the production of additional units of goods or services.

Net Of Tax

The amount remaining after the effect of taxes has been accounted for.

Contingent Asset

A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.