Value creation refers to
A) generating the highest profits possible given available resources.
B) choosing the optimal business model for a given industry.
C) finding an optimal balance between managing risks and taking the right opportunities.
D) how a company creates value for its employees.

Question

Quizplus · Accepted Answer

Value creation refers to the process of adding value to products or services to satisfy customer needs and wants. This involves finding an optimal balance between managing risks and taking opportunities to create the most value for stakeholders, including customers, employees, and shareholders. Maximizing profits (choice A) is only one aspect of value creation, while choosing the optimal business model (choice B) is a strategy for achieving value creation. Creating value for employees (choice D) is important, but it is not the primary focus of value creation.

Value Creation Refers to