Value Chain Linkages Must Be Examined Not Merely Across Activities

question 97

True/False

Value chain linkages must be examined not merely across activities within the company but also in terms of managing relationships with external entities such as suppliers, alliance partners, distributors, or customers within and across nations.

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Definitions:

Spin-out

A type of corporate restructuring where a division of a parent company becomes an independent business. The parent company may retain a stake in the new company.

IPO

An Initial Public Offering (IPO) is the process through which a private company offers shares to the public for the first time to raise capital.

Floatation Costs

Expenses incurred by a company in issuing new securities, including fees to underwriters, legal fees, and registration fees.

Firm Commitment

An agreement where an underwriter guarantees to buy and sell all securities from the issuing company at an agreed-upon price.