Which of the Following Is True of a Value Chain

question 42

Multiple Choice

Which of the following is true of a value chain?

• A)It is a network of value-creating activities.
• B)It consists of only primary activities.
• C)It is specific to manufacturing industries.
• D)It nullifies the importance of support activities.

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Definitions:

Net Operating Income

The profit generated from a business's regular operational activities, excluding expenses and taxes.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been deducted, indicating the portion available to cover fixed costs and generate profit.

Net Operating Income

Gross income after operational expenses are deducted but before income taxes and interest are calculated.

Cost-Volume-Profit Graph

A visual representation that shows the relationship between a company's costs, its production volume, and the profits generated at different levels of output.