What are some financial benefits of using strategic management?
What will be an ideal response?
1. Organizations using strategic-management concepts show significant improvement in sales, profitability, and productivity compared to firms without systematic planning activities.
2. High-performing firms tend to do systematic planning to prepare for future fluctuations in their external and internal environments.
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Substantial research and development will result in more conservative earnings
Indicate whether the statement is true or false
When firms have obligations that do not meet the formal definition of a liability, U.S. GAAP require that firms
a. disclose information about such obligations in notes to the financial statements. b. highlight such arrangements in the Management Discussion and Analysis section. c. have the auditor address such matters in a separate paragraph in the independent auditor's report accompanying the financial statements. d. do not mention the obligation because they are not valid liabilities and to do otherwise would mislead the readers of the financial statements. e. none of the above.
Facilities management refers to ______.
a. selecting the best locations and planning for the optimal manufacturing or service capacity b. managing the layouts of distribution centers at major retailers such as Wal-Mart c. organizing the recruitment and staffing at retail centers d. arranging for the storage of raw materials at intermediate points on the transportation route
Tangshan Mining borrowed $100,000 for one year under a revolving credit agreement that authorized and guaranteed the firm access to $200,000
The revolving credit agreement had a stated interest rate of 7.5 percent and charged the firm a 1 percent commitment fee on the unused portion of the agreement. Based on this information, the effective annual interest rate on the loan is ________. A) 7.5% B) 8.0% C) 8.5% D) 9.0%