Key Activities for a Firm That Competes on the Basis

question 10

Multiple Choice

Key activities for a firm that competes on the basis of differentiation are

• A) design, sourcing, and marketing
• B) contract manufacturing, distribution, and after-sales service
• C) financing, operations, and distribution
• D) raw material supply, assembly, and marketing

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Definitions:

Compounded Monthly

An approach to interest calculation conducted every month, including both the initially loaned or deposited sum and the cumulatively gained interest from former periods.

Compound Increase

The growth of an amount where the increase over time accumulates on itself because the base amount changes due to additions made in previous periods.

Compounded Annually

The calculation and addition of interest to the principal once a year.

Nominal Rate

The interest rate before adjustment for inflation, not reflecting the real cost of borrowing or the real return on an investment.