Which of the following occurs when there are limited resources that must be allocated in an organization?
A. differences over facts
B. differences over goals and priorities
C. competition for scarce resources
D. competition for supremacy
C. competition for scarce resources
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Though advertising experts wish it were true, there is not always a direct link between a particular form of marketing communications and
A. the reach/frequency ratio. B. the level of noise in the IMC channel. C. a consumer's purchase. D. enhanced decoding processes. E. supply chain effectiveness.
In a natural-language processing (NLP) system, the__________activity involves accepting human language as input, carrying out the corresponding command, and generating the necessary output
A) interfacing B) knowledge acquisition C) analysis D) data warehousing
Ray Smith also wants you to examine his company’s credit policy to determine if changes are needed because one of his employees, who graduated recently with a finance major, has recommended that the credit terms be changed from 2/10, net 30 to 3/20, net 45 and that both the credit standards and the collection policy be relaxed. According to the employee, such a change would cause sales to increase from $3.6 million to $4.0 million. Currently, 62.5% of SSP’s customers pay on Day 10 of the billing cycle and take the discount, 32% pay on Day 30, and 5.5% pay (on average) on Day 60. If the new credit policy is adopted, Smith estimated that 72.5% of customers would take the discount, 10% would pay on Day 45, and 17.5% would pay late, on Day 90. Bad debt losses for both policies are
expected to be trivial. Variable operating costs are currently 75% of sales, the cost of funds used to carry receivables is 10%, and its marginal tax rate is 40%. None of these factors would change as a result of a credit policy change. To help decide whether to adopt the new policy, Smith has asked you to answer the following questions: a. What variables make up a firm’s credit policy? In what direction would each be changed if the credit policy is relaxed? How would each variable tend to affect sales, the level of receivables, and bad debt losses? b. How are the days sales outstanding (DSO) and the average collection period (ACP) related to one another? What would the DSO be if the current credit policy is maintained? If the proposed policy is adopted? c. What is the dollar amount of discounts granted under the current and the proposed credit policies? d. Should SSP make the change? Assume that operating and credit costs are paid on the day of the sale. e. Suppose the company makes the proposed change, but its competitors react by making changes in their own credit terms, with the net result being that gross sales remain at the $3.6 million level. What would be the effect on the company’s value? f. (1) What does the term monitoring accounts receivable mean? (2) Why would a firm want to monitor its receivables? (3) How might the DSO and the aging schedule be used in this process?
A significant difference between a board of directors and an advisory board is that the advisory board
A. has unlimited liability for the actions of the corporation. B. is made up only of insiders. C. is required to meet quarterly, not annually. D. has no legal authority over the owner or the company.