Exam 8: Implementing Strategies: Marketing, Financeaccounting, RD, and MIS Issues

To determine the price-earnings ratio, divide the market price of the firm's annual earnings per share by the common stock and multiply this number by the firm's average net income for the past 10 years.

Projected financial analysis is an important strategy-implementation technique because

Which of the following is NOT an accepted approach for determining a business' worth?

A reason for concern over the dilution of company stock is a possible hostile takeover.

Explain the important issues involved in deciding whether to go public, i.e., a private firm considering becoming a public firm. Include cost estimates, advantages and disadvantages.

Which variable would be considered part of the "product" element of the marketing mix?

After segmenting markets so a firm can target particular customer groups, the next step is to find out what customer groups want and expect.

The process of strategic management is facilitated immensely in firms that have an effective information system.

Although cash budgets can be a useful financial tool, publicly held companies are not required to complete them.

What is the most common type of financial budget?

Which two variables rank as marketing's most important contributions to strategic management?

Segmentation often reveals that large, random fluctuations in demand actually consist of several small, predictable, and manageable patterns.

In low earning periods, too much debt in the capital structure of an organization can endanger stockholders' returns and jeopardize company survival.

One of the four recommended approaches for determining a firm's worth is to base the analysis on the selling price of a similar company.

A firm can usually serve two or more market segments with the same strategy.

In general, the Internet makes market segmentation easier.

What is a drawback of using only equity to raise capital?

What becomes a more attractive financing technique when cost of capital is high?

In times of depressed stock prices, stock issuances often prove to be the most suitable alternative for obtaining capital.

As a balance sheet entry, goodwill represents the favor a business has acquired through its environmentally conscious and socially responsible actions.