It Is Becoming More Common to See Manufacturing Firms Use

question 28

Multiple Choice

It is becoming more common to see manufacturing firms use the value chain to take strategic steps to improve the overall profitability of the firm by:

• A)Placing greater emphasis on the value chain.
• B)Moving to an emphasis on upstream activities in the value chain.
• C)Moving to an emphasis on downstream activities in the value chain.
• D)Identifying most profitable customers.
• E)Finding low-cost manufacturing locations.

Evaluate the impact of government interventions in the market such as setting price ceilings below the equilibrium price.

Recognize the conditions under which price controls are binding or not binding.

Interpret graphs and tables related to market conditions before and after the imposition of price controls.

Identify the potential consequences of price controls for producers and consumers.

---

Definitions:

Sole Proprietorship

A business owned and operated by one individual, where there is no legal distinction between the owner and the business entity.

Corporation

A legal entity recognized by law as separate from its owners, providing limited liability and allowing it to own property, enter contracts, and sue or be sued.

Partnership Agreement

A contract between business partners that outlines the terms, conditions, and responsibilities within the partnership.

Terms And Arrangements

The specific conditions and agreements that form the basis of a contract or agreement between parties.