_____ Activities Create Value for Which Customers Are Willing to Pay

question 73

Multiple Choice

_____ activities create value for which customers are willing to pay, whereas _____ activities do not add value directly to the firm's products or services.

• A) Support, primary
• B) Human resource management, inbound logistics
• C) Procurement, operations
• D) Primary, support
• E) Accounting, outbound logistics

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Definitions:

Operating Cash Flow

Operating cash flow refers to the cash generated from the normal operating activities of a business within a specific time period.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted into cash in the upcoming year.

Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders, often reinvested in the business or used to pay down debt.

Cash Flow from Assets

This is the total amount of money being transferred in and out of a company's assets, including operations, investments, and financing activities.