Which of the following is correct about scenario analyses?
A. By anticipating the future and recognizing the warning signs of turbulence ahead, managers can develop more effective strategies.
B. The scenario building team identifies the driving forces and "critical certainties" in a decision and prioritizes them.
C. The objective of the process is to forecast the future.
D. Managers develop best-case, worst-case, and most likely scenarios to guide decision making.
E. The process extrapolates from past data to build scenarios for guiding decision making.
Answer: A
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Carson City Saloon purchased a $25,000 truck for catering from its restaurant. It made a down payment of one- fourth of the price. What combination of amounts would affect the income statement and statement of cash flows for the purchase of the truck? Income Statement
a. $25,000 Cash Flow Statement $ -0- b. $ -0- ($25,000) c. $25,0000 ($6,250) d. $ -0- ($ 6,250)
"What will we do if it happens?" is a question that managers typically ask while conducting a scenario analysis
Indicate whether the statement is true or false
In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc., applies his belief that all persons have fundamental rights. This is
A. a religious rule. B. the categorical imperative. C. the principle of rights. D. utilitarianism.
Rawhide Outfitters had projected its sales for the first six months of 2012 to be as follows:
Jan. $50,000 April $180,000 Feb. $60,000 May $240,000 Mar. $100,000 June $240,000 Cost of goods sold is 60% of sales. Purchases are made and paid for two months prior to the sale. 40% of sales are collected in the month of the sale, 40% are collected in the month following the sale, and the remaining 20% in the second month following the sale. Total other cash expenses are $40,000/month. The company's cash balance as of March 1st, 2012 is projected to be $40,000, and the company wants to maintain a minimum cash balance of $15,000. Excess cash will be used to retire short-term borrowing (if any exists). The firm has no short-term borrowing as of March 1st, 2012. Assume that the interest rate on short-term borrowing is 1% per month. What was Rawhides' projected loss for March? A) $184,000 B) $84,000 C) $110,000 D) none of the above