What are the drawbacks of using total return to shareholders and firm market capitalization to measure firm performance?
What will be an ideal response?
Although measuring firm performance through total return to shareholders and firm market capitalization has many advantages, it is not without problems:
Stock prices can be highly volatile, making it difficult to assess firm performance, particularly in the short term.
Overall macroeconomic factors such as the unemployment rate, economic growth or contraction, and interest and exchange rates all have a direct bearing on stock prices.
Stock prices frequently reflect the psychological mood of investors, which can at times be irrational.
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According to Lawrence and Lorsch, the stability of an organization's environment determines the degree of
A. synergy needed in an organization. B. differentiation and efficiency needed. D. profitability that is vital. E. marketing and integration that is profitable.
In reality, demand and prices are highly uncertain and are likely to fluctuate during the life of any supply chain decision
Indicate whether the statement is true or false.
A company is considering producing two new electronic games designed for the popular Gameboy toy
Based on market data, management believes that there is a 60 percent chance that a "cops and robbers" game will be successful and a 40 percent chance that a "let's play house" game will be successful. As these products are completely different, it may be assumed that the success of one is totally independent of the success of the other. If two products are introduced to the market, what is the probability that both are successful? A) 0.12 B) 0.60 C) 0.36 D) 0.24 E) None of the above
Small businesses in the United States are moving away from synergy as they are trying to reengineer themselves.
Answer the following statement true (T) or false (F)