Questions asked during the strategy analysis stage of the AFI framework include "How does the firm make money?" and "What effects do forces in the external environment have on the firm's potential to gain and sustain a competitive advantage?"
Answer the following statement true (T) or false (F)
True
Strategy analysis involves consideration of both the firm's internal and external environments, and the role that strategic managers play in establishing and maintaining a competitive advantage.
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A corporation plans to invest $1 million in oil exploration. The corporation is considering two plans to raise the money. Under Plan #1, bonds with a contract rate of interest of 6% would be issued. Under Plan #2, 50,000 additional shares of common stock would be issued at $20 per share. The corporation currently has 300,000 shares of stock outstanding, and it expects to earn $700,000 per year before bond interest and income taxes. The net income and return on investment for both plans is shown below:?Plan #1 Plan #2Earnings before bond interest and taxes$ 700,000 $ 700,000Bond interest expense(60,000)?Income before taxes.$ 640,000 $ 700,000 Income taxes(224,000)(245,000)Net income$ 416,000 $ 455,000 ???Equity$8,000,000 $9,000,000 Return on
Equity5.2%5.06%Comment on the relative effects of each alternative, including when one form of financing is preferred to another. What will be an ideal response?
Worker compensation insurance is only necessary for employers to purchase if the employer is engaged in highly dangerous occupations
Indicate whether the statement is true or false
A random sample of 1000 people was taken. Seven hundred fifty of the people in the sample favored Candidate A. The 95% confidence interval for the true proportion of people who favor Candidate A is
A. .723 to .777. B. .727 to .773. C. .70 to .80. D. .725 to .775.
Less than half of the U.S. population is covered by health insurance
Indicate whether the statement is true or false