One of the Most Important Steps a Firm Can Take

question 2

Multiple Choice

One of the most important steps a firm can take in achieving a competitive position with regard to the eco-efficiency strategy is to

• A) Outsource the operations to a developing country
• B) Fully capitalize on technological developments
• C) Shift from service to manufacturing operations
• D) Mandate that all suppliers, distributors and customers reduce their resource consumption

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Definitions:

Interest Expense

Cost incurred by an entity for borrowed funds, which may include payments on loans, bonds, and lines of credit.

Tax Rate

The proportion of income that the government takes from a person or company as taxes.

Incremental Cash Flow

The additional cash flow generated by a company as a result of engaging in a specific project or activity.

Cannibalization

The loss of sales of an existing product due to the introduction of a new product by the same company.