Prior intent to diversify can be a strategic justification for mergers, acquisitions or alliances. Suppose that executives act opportunistically and then use diversification logic to justify their actions. Should stakeholders be concerned, ADD even if their particular interests appear safe?
What will be an ideal response?
At face value the key question is whether stakeholders are comfortable with opportunistic behaviour
in general. Stakeholder groups may have distinct and opposed views on particular situations. Still, if
there is a good history of successful outcomes arising from opportunism then there are grounds for
being relatively unconcerned about opportunistic engagement with other enterprises. However,
mergers, acquisitions and alliances all require distinct capabilities that the enterprise may not have
needed if it has a history of organic growth. So an opportunistic management team may well
underestimate their ability to cope with unfamiliar challenges, which would surely be a cause for
concern for most stakeholder groups. At an ethical level, stakeholders should be concerned if
executives are disingenuous in how they seek to and explain and justify their actions.
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Which of the following is a customer satisfaction measure that indicates the success of the compensation system designed by the HR department of an organization?
A. competitiveness in the local labor market B. per capita (average) merit increases C. the percentage of overtime hours to straight time D. the ratio of recommendations for reclassification to number of employees E. the ratio of average salary offers to the average salary in the community
The following selected financial information for a company was reported for the current year end. Calculate the following company ratios:(a) Accounts receivable turnover.(b) Inventory turnover.(c) Days' sales uncollectedAccounts receivable, beginning-year $170,000Accounts receivable, year-end 190,000Merchandise inventory, beginning-year80,000Merchandise inventory, year-end60,000Cost of goods sold580,000Credit sales1,000,000
What will be an ideal response?
The journal entry to record interest that has been earned but not yet received includes a debit to Interest Receivable and a credit to Interest Income.
Answer the following statement true (T) or false (F)
Harris Corporation, a retailer, had cost of goods sold of $290,000 last year. The beginning inventory balance was $26,000 and the ending inventory balance was $24,000. The corporation's inventory turnover was closest to:
A. 11.60 B. 12.08 C. 5.80 D. 11.15