Question 1

The first step in performing projected financial analysis is to

Accepted Answer

A)  prepare the projected balance sheet. 
B)  take an inventory of goods. 
C)  estimate increases in debt. 
D)  forecast sales as accurately as possible. 
E)  calculate the projected net income. 
A)  prepare the projected balance sheet. 
B)  take an inventory of goods. 
C)  estimate increases in debt. 
D)  forecast sales as accurately as possible. 
E)  calculate the projected net income.

Question 2

When employees understand the thinking that went into strategy formulation, and understand their roles, they will be more inclined to accept the work required for strategy implementation.

Accepted Answer

A) True 
 B)False

Question 3

Operating income is sometimes also called

Accepted Answer

A)  EPS. 
B)  SWOT. 
C)  ROA. 
D)  ROE. 
E)  EBIT. 
A)  EPS. 
B)  SWOT. 
C)  ROA. 
D)  ROE. 
E)  EBIT.

Question 4

In preparing projected statements, to project cost of goods sold in the income statement, which of these methods is recommended?

Accepted Answer

A)  Net Worth Method 
B)  Net Income Method 
C)  Percentage-of-Sales Method 
D)  Price-Earnings Ratio method 
E)  Outstanding Shares Method 
A)  Net Worth Method 
B)  Net Income Method 
C)  Percentage-of-Sales Method 
D)  Price-Earnings Ratio method 
E)  Outstanding Shares Method

Question 5

The denominator of EPS is

Accepted Answer

A)  treasury stock. 
B)  shares authorized. 
C)  average number of shares. 
D)  shares outstanding. 
E)  preferred shares. 
A)  treasury stock. 
B)  shares authorized. 
C)  average number of shares. 
D)  shares outstanding. 
E)  preferred shares.

Question 6

Determining an appropriate mix of debt and equity in a firm's capital structure is an important strategy-formulation decision.

Accepted Answer

A) True 
 B)False

Question 7

If the net income is the same, an increase in treasury stock lowers the EPS.

Accepted Answer

A) True 
 B)False

Question 8

Identify and describe the four corporate valuation methods (approaches for determining a business' monetary value).

Accepted Answer

1) Net Worth Method: Total Shareholders'

Question 9

What is the most widely used technique for determining the best combination of debt and stock?

Accepted Answer

A)  Debt-to-Stock Ratio 
B)  Earnings Per Share/Earnings Before Interest and Taxes Analysis 
C)  Gross Profit Analysis 
D)  Capital Asset Pricing Model 
E)  Present Value Analysis 
A)  Debt-to-Stock Ratio 
B)  Earnings Per Share/Earnings Before Interest and Taxes Analysis 
C)  Gross Profit Analysis 
D)  Capital Asset Pricing Model 
E)  Present Value Analysis

Question 10

An EPS/EBIT chart can be constructed to determine the break-even point, where one financing alternative becomes more attractive than another.

Accepted Answer

A) True 
 B)False

Question 11

If a company's leverage ratio skyrockets versus industry averages, then cash (and other short-term assets) must be managed.

Accepted Answer

A) True 
 B)False

Question 12

Decisions about an initial public offering are better described as being finance and accounting matters than as marketing matters.

Accepted Answer

A) True 
 B)False

Question 13

An IPO ________ the owners' control of the firm.

Accepted Answer

A)  increases 
B)  maintains 
C)  does not affect 
D)  dilutes 
E)  consolidates 
A)  increases 
B)  maintains 
C)  does not affect 
D)  dilutes 
E)  consolidates

Question 14

Name three finance and accounting activities especially important in strategy implementation.

Accepted Answer

Possible answers include: 1) Acquire nee

Question 15

Buying a company is like buying a house in that paying a "premium" is usually not financially prudent.

Accepted Answer

A) True 
 B)False

Question 16

Four common corporate Valuation methods are the Net Worth Method, the Net Income Method, the Price-Earnings Ratio Method, and the Outstanding Shares Method.

Accepted Answer

A) True 
 B)False

Question 17

Projected financial analysis is an important strategy-implementation technique because

Accepted Answer

A)  it is an exact measurement of financial costs in the future. 
B)  it is an exact measurement of future company profits. 
C)  it allows an organization to examine the expected results of strategies being implemented. 
D)  insurance needs can be computed. 
E)  none of the above 
A)  it is an exact measurement of financial costs in the future. 
B)  it is an exact measurement of future company profits. 
C)  it allows an organization to examine the expected results of strategies being implemented. 
D)  insurance needs can be computed. 
E)  none of the above

Question 18

Corporate bond prices are less sensitive to daily or quarterly firm operations compared to stock prices.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT given as an example of a decision that may require finance/accounting policies?

Accepted Answer

A)  To extend the time of accounts receivable 
B)  To establish a certain percentage discount on accounts within a specified period of time 
C)  To lease or buy fixed assets 
D)  To use LIFO, FIFO, or a market-value accounting approach 
E)  To be a price leader or a price follower 
A)  To extend the time of accounts receivable 
B)  To establish a certain percentage discount on accounts within a specified period of time 
C)  To lease or buy fixed assets 
D)  To use LIFO, FIFO, or a market-value accounting approach 
E)  To be a price leader or a price follower

Question 20

All the methods for determining a business' worth can be grouped into three basic approaches: what a firm earns, what a firm spends, and what a firm will bring in the market.

Accepted Answer

A) True 
 B)False

The first step in performing projected financial analysis is to

When employees understand the thinking that went into strategy formulation, and understand their roles, they will be more inclined to accept the work required for strategy implementation.

Operating income is sometimes also called

In preparing projected statements, to project cost of goods sold in the income statement, which of these methods is recommended?

The denominator of EPS is

Determining an appropriate mix of debt and equity in a firm's capital structure is an important strategy-formulation decision.

If the net income is the same, an increase in treasury stock lowers the EPS.

Identify and describe the four corporate valuation methods (approaches for determining a business' monetary value).

What is the most widely used technique for determining the best combination of debt and stock?

An EPS/EBIT chart can be constructed to determine the break-even point, where one financing alternative becomes more attractive than another.

If a company's leverage ratio skyrockets versus industry averages, then cash (and other short-term assets) must be managed.

Decisions about an initial public offering are better described as being finance and accounting matters than as marketing matters.

An IPO ________ the owners' control of the firm.

Name three finance and accounting activities especially important in strategy implementation.

Buying a company is like buying a house in that paying a "premium" is usually not financially prudent.

Four common corporate Valuation methods are the Net Worth Method, the Net Income Method, the Price-Earnings Ratio Method, and the Outstanding Shares Method.

Projected financial analysis is an important strategy-implementation technique because

Corporate bond prices are less sensitive to daily or quarterly firm operations compared to stock prices.

Which of the following is NOT given as an example of a decision that may require finance/accounting policies?

All the methods for determining a business' worth can be grouped into three basic approaches: what a firm earns, what a firm spends, and what a firm will bring in the market.

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategies in Action

Strategy Analysis and Choice

Implementing Strategies: Management and Marketing Issues

Strategy Evaluation and Governance

Business Ethics, Environmental Sustainability, and Social Responsibility

Global and International Issues

Filters

Exam 8: Implementing Strategies: Finance and Accounting Issues

The first step in performing projected financial analysis is to

When employees understand the thinking that went into strategy formulation, and understand their roles, they will be more inclined to accept the work required for strategy implementation.

Operating income is sometimes also called

In preparing projected statements, to project cost of goods sold in the income statement, which of these methods is recommended?

The denominator of EPS is

Determining an appropriate mix of debt and equity in a firm's capital structure is an important strategy-formulation decision.

If the net income is the same, an increase in treasury stock lowers the EPS.

Identify and describe the four corporate valuation methods (approaches for determining a business' monetary value).

What is the most widely used technique for determining the best combination of debt and stock?

An EPS/EBIT chart can be constructed to determine the break-even point, where one financing alternative becomes more attractive than another.

If a company's leverage ratio skyrockets versus industry averages, then cash (and other short-term assets) must be managed.

Decisions about an initial public offering are better described as being finance and accounting matters than as marketing matters.

An IPO ________ the owners' control of the firm.

Name three finance and accounting activities especially important in strategy implementation.

Buying a company is like buying a house in that paying a "premium" is usually not financially prudent.

Four common corporate Valuation methods are the Net Worth Method, the Net Income Method, the Price-Earnings Ratio Method, and the Outstanding Shares Method.

Projected financial analysis is an important strategy-implementation technique because

Corporate bond prices are less sensitive to daily or quarterly firm operations compared to stock prices.

Which of the following is NOT given as an example of a decision that may require finance/accounting policies?

All the methods for determining a business' worth can be grouped into three basic approaches: what a firm earns, what a firm spends, and what a firm will bring in the market.

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategies in Action

Strategy Analysis and Choice

Implementing Strategies: Management and Marketing Issues

Strategy Evaluation and Governance

Business Ethics, Environmental Sustainability, and Social Responsibility

Global and International Issues

Filters