The "percent of sales method" is a method of preparing pro forma financial statements. All of the
following would be examples of how the "percent of sales method" is developed EXCEPT:
A) Forecast assets by applying a percent of projected sales, using current year's assets as a
percent of current year's sales.
B) Forecast retained earnings by applying a percent of projected sales, using current year's
retained earnings as a percent of current year's sales.
C) Approximate liabilities by applying a percent of projected sales, using the last five-year
average of liabilities as a percent of sales.
D) Forecast expenses by applying a percent of projected sales, using last year's expenses as a
percent of last year's sales.
B
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In a deductive message, the most important information should be
a. placed at the very end of the message. b. placed at the beginning of the message. c. placed in the middle of the message. d. placed in all sections of the message.
PepsiCo divested its group of fast-food restaurant businesses (KFC, Pizza Hut, and Taco Bell) to Yum! Brands in order to allow PepsiCo to focus on its core soft drink and snack-food businesses. A useful guide to determine whether or when to divest a business subsidiary is to ask,
A. "Can't we derive a parenting advantage with these businesses?" B. "Will these three businesses pass the ‘cost-of-exit' test?" C. "Have we missed the opportunity to milk these cash cows?" D. "Do we need to do the math to achieve 1 + 1 = 3 outcomes from these diversified businesses?" E. "If we were not in this business today, would we want to get into it now?"
Identify a true statement about business ethics.?
A. ?Business ethics decrease shareholders' trust in the company. B. ?Business ethics result in recurring fines and legal expenses. C. ?Business ethics attract business from customers who appreciate and support political parties. D. ?Business ethics reduce the economic viability of the communities where these firms operate. E. ?Business ethics attract and keep employees of the highest caliber.
Ideally, segmenters should start with the idea that each person is "one of a kind" and can be described by a special set of dimensions that may be used to aggregate similar customers together.
Answer the following statement true (T) or false (F)