If a Company Is Considering Optimizing the Physical Location for Every

question 6

Multiple Choice

If a company is considering optimizing the physical location for every activity in the value chain, which of the following is not a possible strategic advantage for that decision?

• A)Performance enhancement
• B)Cost reduction
• C)Political risk reduction
• D)Life-cycle enhancement

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Definitions:

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff, including social security and Medicare taxes in the United States.

Contingent Liabilities

Potential financial obligations that may occur depending on the outcome of a future event.

Future Event

A prospective occurrence or situation that has yet to happen, often considered in planning and strategy contexts.

Amount Repaid

The total sum of money that has been paid back to a lender in fulfilling the terms of a loan or financial obligation.