Which of the Following Is a Value-Added Activity by a Manufacturer

question 50

Multiple Choice

Which of the following is a value-added activity by a manufacturer of chocolate candies?

• A)The addition of chocolate syrup into the candy mix.
• B)Hiring production workers.
• C)Storing the candy bars until they are distributed to stores.
• D)Managing the cost of electricity by the production department.

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Definitions:

Capital Structure

This term relates to the way a corporation finances its operations and growth by using different sources of funds, such as debt, equity, and hybrid securities.

Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by shareholders' equity, indicating the extent to which debt is used to finance the company's assets.