1.

The term value chain refers to the idea that a company is:

		one of a series of units that comprise an industry segment.
		the producer of a series of customer-valued products that are linked together.
		a series of activities that transform inputs into products that customers value.
		one of a series of economic functions.
		a collection of various products and their attributes.

2.

Which of the following is true of growth industries?

		They typically have high barriers to entry.
		They tend to be characterized by weak rivalry.
		They are characterized by low demands.
		They increase prices because customers are more aware of the industry's product.
		They inhibit the development of distribution channels

3.

Production and materials-management functions need not be changed in response to unanticipated customer demands as they do not affect response time.

True

False