_____ 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:

P/E Ratio

Price-to-Earnings Ratio, a valuation metric comparing the current share price of a company to its per-share earnings, used to evaluate if the stock is overvalued or undervalued.

ROE

Return on equity, a financial ratio that measures the profitability of a company by indicating how much profit a company generates with the money shareholders have invested.

Market-To-Book Value

A ratio used to compare a company's current market value to its book value, indicating how investors value the company relative to its actual assets.

Quick Ratio

A measure of liquidity similar to the current ratio except for exclusion of inventories. It equals cash plus receivables divided by current liabilities.