How Can Firms Use Value-Chain Activities to Create a Competitive

question 89

Essay

How can firms use value-chain activities to create a competitive advantage?

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, also known as net earnings or net profit.

Available-For-Sale Securities

These are debt or equity securities purchased with the intent of selling before they reach maturity, but are not actively traded, and are recorded at fair market value on the balance sheet.

Fair Value

Fair value is the estimated market price of an asset or liability, reflecting the amount for which it could be exchanged or settled in a transaction between knowledgeable, willing parties under no compulsion.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenue and expenses to the appropriate period, ensuring accurate financial reporting.