Which of the following statements is true of business processes?
A)Value chain activities differ based on the business processes being used.
B)If a value chain's margin is negative,the costs of the value chain should be increased.
C)The processes implementing a value chain must create sufficient value to cover their costs.
D)Value chains are designed to implement business processes.

Question

Quizplus · Accepted Answer

Business processes must create sufficient value to cover their costs. If the value created does not exceed the cost of implementation, then the process is not considered efficient and needs to be improved or eliminated. A value chain is a series of activities that ultimately result in delivering value to the customer, but value chain activities themselves do not differ based on business processes. If a value chain's margin is negative, it means that the costs are higher than the revenue generated, so increasing the costs will only worsen the situation. Value chains are not designed to implement business processes; rather, they are a way of organizing and improving existing processes to deliver value.

Which of the Following Statements Is True of Business Processes