Answer to Question 1
Support activities are business functions that assist and facilitate the primary activities. The support activities in the generic value chain facilitate the primary activities and contribute only indirectly to the production, sale, and service of the product. They include procurement, which consists of the processes of finding vendors, setting up contractual arrangements, and negotiating prices. Porter defined technology broadly. It not only includes research and development, but it also includes other activities within the firm for developing new techniques, methods, and procedures. Human resources includes recruiting, compensation, evaluation, and training of full-time and part-time employees. Firm infrastructure includes general management, finance, accounting, legal, and government affairs. Supporting functions add value, albeit indirectly, and they also have costs.
Answer to Question 2
TRUE
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