Firm value is created when the value to the customer of receiving products and services exceeds the cost of these activities,

Question

Quizplus · Accepted Answer

This is because when the value to the customer is greater than the cost, customers are willing to pay for the products or services, generating revenue for the firm. When revenue exceeds the costs associated with providing these products or services, the firm experiences a profit and its overall value increases.

Firm Value Is Created When the Value to the Customer