Which of the Following Is Not an Action That a Company

question 58

Multiple Choice

Which of the following is not an action that a company can take to do a better job than rivals of performing value chain activities more cost-effectively?

• A) Striving to capture all available economies of scale.
• B) Trying to operate facilities at full capacity.
• C) Taking full advantage of experience and learning curve effects.
• D) Improving supply chain efficiency.
• E) Redesigning products to eliminate features that might have market appeal,but excessively increase production costs.

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Definitions:

Cash Flow From Assets

The total amount of money being transferred in and out of a company's operations, investments, and financing, specifically relating to its assets.

Cash Flow To Creditors

The amount of cash companies pay to their creditors and lenders, including payments for interest and principal on debt.

Cash Flow To Shareholders

Dividends paid out by a firm less net new equity raised.

Capital Gains

The profit that results from a sale of a capital asset, such as stock, bond, or real estate, where the sale price exceeds the purchase price.