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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

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BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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In which areas of an organization’s value chain can important business sustainability risks or opportunities arise?

  1. I. Research & Development
  2. II. Customer Service
  3. III. Manufacturing
  4. IV. Warehousing & Distribution
  5. a. I only
  6. b. II only
  7. c. III only
  8. d. II and IV
  9. e. I, II, III, and IV

To determine

Identify the option that depicts the areas of an organization’s value chain in which, business sustainability risks or opportunities may arise.

Explanation

Business Sustainability:

Business sustainability means increasing the business worth for a long term, by analyzing and managing threats and opportunities of the organization for achievement of organizational strategic plans and communicating the results transparently.

e.

Business sustainability risks and opportunities may arise in all the areas of the value chain of an organization. Organizations assess the stakeholder’s responses as risks or opportunities which would affect the achievement of organizational strategy.

Organizations require assessing opportunities and threats during decision making in various areas like research and development, customer service, manufacturing, and warehousing and distribution. For example, areas of research, manufacturing process selected, customer service policies, distribution areas all these decisions may impose threats or opportunities to an organization.

Therefore, this is the correct option...

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