The Value Chain Framework Can Be Used to View a Firm

question 46

Multiple Choice

The value chain framework can be used to view a firm as a series, a chain, or a network of basic activities that:

• A) Add value to its products and services, and thus add a margin of value to the firm.
• B) Lower costs along the product development chain.
• C) Create the perception of value and goodwill to employees.
• D) Create a smooth-flowing chain of events between the supplier and the customer.

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Definitions:

Two-party Relationship

A legal or commercial association involving two parties, often characterized by a contractual agreement or other formal arrangement.

Express Authority

Actual authority that the principal has manifested to the agent in very specific or detailed language.

Implied Authority

Actual authority given to an agent to bind his or her principals and to act in a way that the agent reasonably believes is necessary to perform his or her duties.

Indemnify

To reimburse or promise to reimburse another from loss. To act as security or protection against a loss.