Which of the Following Is Most Likely to Be the Advantage

question 33

Multiple Choice

Which of the following is most likely to be the advantage of locating a value creation activity in the optimal location for that activity?

• A) It increases the costs of value creation.
• B) It decreases consumer surplus.
• C) It helps the firm to achieve a high-cost position.
• D) It nullifies all trade barriers.
• E) It enable a firm to differentiate its product offering from those of competitors.

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Definitions:

Payment Maturity

The date on which a financial obligation must be repaid in full.

Note Issuance

Note issuance involves the creation and offering of a promissory note, a financial instrument wherein the issuer promises to pay a specific amount to the holder on demand or at a future date.

Estimable Liability

A financial obligation or debt that can be measured or estimated with a reasonable level of accuracy.

Probable Likelihood

A high chance or probability that an event will occur.