A fundamental problem of the modern corporation is the conflict of interests between managers, shareholders, and stakeholders
a. True
b. False
Indicate whether the statement is true or false
True
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The Sophisticated Touch, Co., a catering company, wants to evaluate its historical financial data over the last five years.
a) Set up a ratio worksheet similar to Exhibit 3-6, page 92, and calculate all of the ratios for The Sophisticated Touch, Co.
b) Verify the change in 2017 Sophisticated Touch, Co.’s ROE using the Du Pont method.
c) Using the Altman’s model for privately held firms and public ones, calculate the Z-score for The Sophisticated Touch, Co. Assume that the market value of equity is $1,500,000; $1,250,000; $1,000,000; $850,000; and $700,000 for the years 2017, 2016, 2015, 2014, and 2013 respectively.
d) Calculate the economic profit for these years and compare it to net income. Assume that the WACC is 12% each year.
e) The staff at The Sophisticated Touch, Co. wants to perform a trend analysis with the data generated in the previous sections of this problem. Create a line chart showing each category of ratios from 2013 to 2017. Make sure to title the chart and label the axes. Also make a line chart of the Altman’s model for private and public firms from 2013 to 2017.
Marketers drive traffic to the company Web sites solely through using other online and digital marketing tools
Indicate whether the statement is true or false
Setting a direction is the leadership activity that involves developing a strategic vision of what the organization could become.
Answer the following statement true (T) or false (F)
The authors define entrepreneurship as ______.
a. a discipline that seeks to understand how opportunities are discovered, created, and exploited, by whom, and with what consequences b. starting a small business by finding investors and launching a product c. developing a new market by creating a product that does not currently exist d. a mindset that compels people to start multiple ventures throughout a lifetime.