A Tool That Helps Managers Identify the Size of Value-Chain

question 30

Multiple Choice

A tool that helps managers identify the size of value-chain segments and the attractiveness of each segment is called the ________ pool.

• A) revenue
• B) expense
• C) profit
• D) net

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Definitions:

D/E Ratio

The debt-to-equity ratio, a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

Assets

Resources owned by a business or individual that have economic value and can be used to meet debts, commitments, or legacies.

Debt/Equity Ratio

A gauge illustrating the financial reliance of a company on debt versus equity for asset support.

Long-Term Debt Ratio

The long-term debt ratio measures the proportion of a company's total debt that is due in more than one year, indicating the extent to which a company relies on long-term borrowing for its financing needs.