The BCG matrix is a useful approach to evaluate current businesses. Describe a device that a firm could use to decide how to make growth happen
What will be an ideal response?
The product-market growth matrix is a useful device for analyzing different growth strategies. There are four strategies available to companies: market penetration, market development, product development, and diversification. Market penetration entails making more sales to current customers without changing products. Market development involves identifying and developing new markets for a company's products. New markets include demographic groups and geographic regions, among others. Companies can also consider product development, offering modified or new products to current markets. Diversifying companies might consider acquiring or starting new businesses unrelated to their core competencies.
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Which of the following is least likely to represent a material weakness in internal control for Flynt Corporation?
A. Flynt Corporation's computer systems were not working properly for two days; consequently, employees needed to do all reconciliations manually. B. Flynt Corporation's CFO was arrested last year for embezzling money from the entity. C. Flynt's audit committee is deemed to be ineffective. D. For the current year, the auditor found a material misstatement in Flynt's sales recognition that was undetected by the internal controls.
___________ contacts are agreements to exchange currencies at specified times and rates.
Fill in the blank(s) with the appropriate word(s).
Which of the following statements about mobile home insurance is (are) true?
I. Coverage for the mobile home may be written on either a replacement cost basis or an actual cash value basis, depending on how much the mobile home has depreciated. II. An additional coverage pays, up to a specified dollar limit, for the cost of transporting the mobile home to a safe place when it is endangered by a covered peril. A) I only B) II only C) both I and II D) neither I nor II
Debt financing is more risky for firms than preferred stock financing because
A. preferred dividend payments are legal obligations. B. interest payments are legal obligations. C. preferred stock must be retired. D. debt need not be refinanced.