Business

Superior value creation relative to rivals requires that the firm: A.

QUESTION Superior value creation relative to rivals requires that the firm: A. creates similar products as its competitors so that consumers do not have to pay a premium price. B. has the highest cost structure in the industry. C. creates the least valuable product in the eyes of consumers. D. ensures that the gap between […]

Read full post

Date: September 3rd, 2020

Which of the following shows all of the different positions that a fir

QUESTION Which of the following shows all of the different positions that a firm can adopt with regard to value creation and low cost assuming that its internal operations are configured adequately to support a particular position? A. Demand-value model B. Experience curve C. Efficiency frontier D. Optimal output model E. Surplus curve   ANSWER […]

Read full post

Date: September 3rd, 2020

A firm maximizes its profitability when it: A. creates products simil

QUESTION A firm maximizes its profitability when it: A. creates products similar to the products of its competitors. B. minimizes the value provided by its products. C. picks a position on the efficiency frontier that is not viable. D. strips all the value out of its product offering. E. configures its internal operations to support […]

Read full post

Date: September 3rd, 2020

A firm’s profitability is maximized when it: A. creates products simi

QUESTION A firm’s profitability is maximized when it: A. creates products similar to the products of its competitors. B. strips all the value out of its product offering. C. ensures that it has the right organization structure in place to execute its strategy. D. picks a position on the efficiency frontier that is not viable. […]

Read full post

Date: September 3rd, 2020

For a firm to maximize its profitability, it is necessary that it: A.

QUESTION For a firm to maximize its profitability, it is necessary that it: A. creates products similar to the products of its competitors. B. does not configure its internal operations to reduce costs. C. minimizes the value of the consumer surplus. D. picks a position on the efficiency frontier that is viable. E. strips all […]

Read full post

Date: September 3rd, 2020

The value creation activities of a firm are categorized as: A. primar

QUESTION The value creation activities of a firm are categorized as: A. primary activities and support activities. B. strategic activities and functional activities. C. ancillary functions and tertiary functions. D. primary activities and core activities. E. goal-oriented activities and organizational activities.   ANSWER A

Read full post

Date: September 3rd, 2020

Profit growth is measured by: A. dividing the net profits of the firm

QUESTION Profit growth is measured by: A. dividing the net profits of the firm by total invested capital. B. subtracting the previous year’s gross profit from the current year’s gross profit. C. calculating the difference between the previous year’s profitability and the current year’s profitability. D. the percentage increase in net profits over time. E. […]

Read full post

Date: September 3rd, 2020