The primary advantage of the price/earnings approach to valuation is that it
a. reflects "top value" of the firm.
b. pays off assets and sells liabilities.
c. assumes business begins operations.
d. is simple to use.
ANSWER: d
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Briefly describe the five core management processes that comprise Level 1 of the SCOR model
What will be an ideal response?
Managers at Pinecraft Furniture Co. determined that there would be no end-of-year bonuses because sales were predicted to level off. Chris, a department manager, let his staff know that even high-performing employees would not get bonuses this year. This change limits Chris's ________ power.
A. legitimate B. expert C. reward D. coercive E. referent
Indicate whether each of the following statements about financial statement analysis is true or false.The ratio of plant assets to long-term liabilities is a measure of a company's ability to obtain additional long-term financing. ______Generally, a company's current assets should be purchased using long-term financing such as bonds payable. ______Ratios that measure a company's profitability provide some measure of the effectiveness of the company's management. ______Net margin indicates the amount remaining from each sales dollar after cost of goods sold has been subtracted out. ______Net margin is also sometimes called the return on assets ratio. ______
What will be an ideal response?
A focused differentiation strategy can lead to attractive competitive advantage when ________.
A) industry leaders have chosen not to compete in the niche. B) buyers are not strongly loyal to a brand and a large number of other rivals are attempting to specialize in the same target segment. C) the industry has many different segments and market niches, thereby allowing a focuser to pick an attractive niche suited to its resource strengths and capabilities. D) the target market niche is big enough to be profitable and offers good growth potential. E) it is costly or difficult for multisegment competitors to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers.