Consider the Firm in Terms of a Value Chain

question 16

Essay

Consider the firm in terms of a value chain. What is the difference between primary activities and support activities? Provide examples of each.

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Definitions:

Paid-in Capital

Equity capital that is contributed to a corporation by its shareholders, in addition to the prescribed par value, representing funds received from investors.

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that, if omitted, accumulate and must be paid before dividends can be paid to common shareholders.

Annual Dividend

The total amount of dividend payments made to shareholders in a year.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in cash.