What does a high ROIC indicate?

a$.$ The company is effectively using its capital to generate profits

b$.$ The company is stuck in the middle.

c$.$ The company is inefficient in allocating its capital.

d$.$ The company will fail.

We have discussed intermediaries in the supply chain, such as retailers and distributors. Which of

the following is NOT true?

a$.$ Intermediaries streamline distribution processes and help improve inventory

management.

b$.$ Intermediaries offer specialized knowledge, technical support, and market insights.

c$.$ Intermediaries do not help manufacturers reach a wider customer base.

d$.$ Miscommunication or conflicts with intermediaries can lead to inefficiencies and delays.

Which of the following best describes retailers?

a$.$ A retailer is a business that sells goods to the public in relatively small quantities for use

or consumption.

b$.$ A retailer is a business that sells goods to the public in relatively large quantities for use

or consumption.

c$.$ A retailer is a business that sells goods to the public in relatively small quantities for

resale,

d$.$ A retailer is a business that sells goods to the public in relatively large quantities for

resale.

Consider the value stick to the right. What is the total value created by this company?

a$.$ $$500$

b$.$ $$450$

c$.$ $$400$

d$.$ $$300$

Consider the same value stick. What is the amount of value that is

captured by the firm?

a$.$ $$50$

b$.$ $$100$

c$.$ $$300$

d$.$ $$450$

Consider the same value stick. What impact would an increase in

price have the amount of value captured by the various parties?

a$.$ The amount of value captured by suppliers would

increase.

b$.$ The amount of value captured by buyers would increase.

c$.$ The amount of value captured by the firm would increase.

d$.$ The amount of value captured by the parties would not change.