Goals of crisis management include all of the following EXCEPT:
A) terminate the crisis quickly.
B) limit damage.
C) build a case for blame.
D) restore credibility.
C
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When you're writing a report, you can adapt to your intended audience by
A) avoiding the "you" attitude. B) using technical jargon. C) using a format consistent with all other communications. D) using an informal style and tone. E) being sensitive to the audience's needs.
Both creative insight and analytical structure are necessary to paint a meaningful picture of the market situation, marketing strategy, and a logic-based path that leads to the desired performance objectives
Indicate whether the statement is true or false
Fashion Trends, Inc., a regional fashion apparel retailer, wants to prepare a 2018 Pro Forma Income Statement and a 2018 Balance Sheet using the following 2017 and 2016 data:
The firm has forecasted sales of $7,100,000 and a tax rate of 40% for 2018. Cost of goods sold and S,G&A expense in 2018 are expected to be the average of their two-year proportion of sales. On the balance sheet, accounts receivable, inventory, accounts payable, and accrued expenses are expected to be at the two-year average of the proportion of these items in relation to sales. The firm has planned an investment of $500,000 in fixed assets in 2018, with an estimated life of 10 years and no salvage value. These fixed assets will be depreciated using the straight line depreciation method. All other financial statement items are expected to remain constant in 2018. Assume the firm pays 4% interest on short-term debt and 7% on long term debt. Assume that the dividends in 2018 will be the same as those paid in 2017.
a) What is the Discretionary Financing Needed (DFN) in 2018? Is this a surplus or deficit?
b) DFN will be absorbed by long-term debt. Set up an iterative worksheet to eliminate it.
c) Turn off iteration, and use the Scenario Manager to set up three scenarios:
1. Best Case — Sales are 15% higher than expected.
2. Base Case — Sales are exactly as expected.
3. Worst Case — Sales are 15% less than expected.
What is the DFN under each scenario?
What is a possible risk involved with licensing?
What will be an ideal response?