The term value chain refers to the idea that a company is
A) one of a series of companies that comprise an industry segment.
B) the producer of a series of products that are linked together.
C) a chain of activities for transforming inputs into outputs that customers value.
D) one of a series of economic functions.
E) all of the above.

Question

Quizplus · Accepted Answer

The term value chain specifically refers to a series of activities that a company engages in to create and deliver a product or service that is valued by customers. Thus, option C is the most accurate choice. Option A refers to industry segments, which may or may not be relevant to the company in question. Option B is similar, but does not necessarily capture the idea of activities being linked together in a specific sequence. Option D is too broad and general to be a specific definition of the term value chain. Therefore, option E is incorrect as well.

The Term Value Chain Refers to the Idea That a Company