When Companies Disperse Different Stages of the Value Chain to Those

question 102

Multiple Choice

When companies disperse different stages of the value chain to those locations around the world where perceived value is maximized or where the costs of value creation are minimized, companies create

• A) a differentiated organization.
• B) a location economy curve.
• C) economies of scale.
• D) a global web of value creation activities.

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Definitions:

Current Portion

The part of a long-term liability that is due to be paid within the next twelve months.

Classified Statement

A financial statement in which similar items are grouped together to facilitate better understanding and analysis of the company's financial position and performance.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business, whichever is longer.

Converted Into Cash

The process of liquidating assets or investments to generate cash flow or liquidity.