Question : 53.With regard to planning, the first priority for a firm : 1325761

 

 

53.With regard to planning, the first priority for a firm that competes by achieving lowest cost production might be

a.to determine whether it should make additional investments in order to achieve even greater production efficiencies.

b.to assess whether new or expanded marketing programs might increase the value of the brand relative to those of competitors.

c.to intensify its efforts to further discriminate its brand from that of its competitors.

d.all of the above.

 

 

 

54.The multiyear action plan for the major investments and competitive initiative that the firm’s managers believe will drive the future success of the enterprise is called

a.the firm’s rollout plan.

b.the tactical plan.

c.the strategic plan.

d.none of the above.

 

 

 

55.The responsibility to assess the feasibility of a strategic plan given a firm’s existing and prospective sources of funding falls primarily to the

a.senior management of the firm.

b.finance function within the firm.

c.accounting function within the firm.

d.marketing function within the firm.

 

 

 

56.Increases in assets must be accompanied by

a.an increase in liabilities.

b.an increase in owners equity.

c.equal amounts of a) and b).

d.some combination of a) and b).

 

 

 

57.For the prior year, Billy Bob’s Dress Shop had a net profit margin of 5% based upon a sales level of $100,000. It’s total assets are $1,000,000 while its total equity is $300,000. If Billy Bob pays out 50% of its net income in dividends, then what is the firm’s sustainable growth rate going forward?

a..84%

b.8.00%

c.8.40%

d.none of the above

 

 

 

58.In the year just ended, Ellie May’s Power Tools had net income of $200,000 based upon a sales level of $1,500,000. It’s total assets are $800,000 while its total equity is $700,000. If Ellie May pays out 0% of its net income in dividends, then what is the firm’s sustainable growth rate going forward?

a..40%

b.38%

c.40%

d.none of the above

 

 

 

59.You are a financial consultant to a company that asks you what effect a change in leverage has on the firm’s sustainable growth. Assuming all other things remain constant and if the percentage of assets that are financed with debt increases, then how will that affect the firm’s sustainable growth rate?

a.the sustainable growth rate will decrease

b.the sustainable growth rate will increase

c.the effect is indeterminable

d.the sustainable growth rate will neither decrease or increase

 

 

 

60.A top-down approach to sales forecasting begins with

a.a firmwide sales objective.

b.a departmental head forecast.

c.a talk with the customer.

d.none of the above.

 

 

 

61.A bottom-up approach to sales forecasting begins with

a.a firmwide sales objective.

b.a departmental head forecast.

c.a talk with the customer.

d.none of the above.

 

 

 

62.The percentage-of-sales method for forecasting pro forma financial statements assumes

a.that all income statement and balance sheet items grow in proportion to sales.

b.that all income statement and balance sheet items grow at a growing proportion to sales.

c.that all income statement and balance sheet items grow at a decreasing proportion to sales

d.none of the above.

 

 

 

 

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