ADM Quiz 4

What category of ratios measures a firm's ability to meet maturing short-term obligations? a. Activity b. Growth c. Leverage d. Liquidity e. Profitability

d. Liquidity

Which management function includes breaking tasks into jobs, combining jobs to form departments, and delegating authority? a. Organizing b. Motivating c. Planning d. Staffing e. Controlling

a. Organizing

Value chain analysis can enable a firm to better identify its own strengths and weaknesses especially as compared to competitors' value chain analyses and their own data over time. a. True b. False

a. True

Although a useful step in the strategic management process, value chain analysis does little to help a firm monitor whether its prices and costs are competitive. a. True b. False

b. False

Proponents of the resource-based view argue that external factors are more important than internal factors for a firm in achieving and sustaining competitive advantage. a. True b. False

b. False

Test marketing is used more frequently by industrial companies than consumer goods companies. a. True b. False

b. False

What category of ratios includes return on total assets and return on stockholders' equity? a. Growth b. Profitability c. Leverage d. Activity e. Liquidity

b. Profitability

Who does a planning horizon of two to five years apply to? a. Middle-level management b. Top-level management c. General management d. Lower-level management e. All levels of management

b. Top-level management

Which function of management includes areas such as job design, job specifications, job analysis, and unity of command? a. Planning b. Motivating c. Organizing d. Controlling e. Staffing

c. Organizing

All of the following are basic functions of marketing EXCEPT a. distribution. b. product and service planning. c. value chain analysis. d. pricing. e. customer analysis.

c. value chain analysis.

Distribution includes a. test marketing. b. advertising. c. warehousing. d. pricing. e. customer analysis.

c. warehousing.

Which ratio would be considered an activity ratio? a. Earnings per share b. Debt-to-equity c. Net profit margin d. Current ratio e. Average collection period

e. Average collection period

Which of the three finance and accounting decisions concerns determining the best capital structure for the firm and includes examining various methods by which the firm can raise capital? a. Implementation b. Investment c. Capital budgeting d. Dividend e. Financing

e. Financing

An effective information management system _______ information in such a way that it answers important operating and strategic questions. a. synthesizes b. codes c. stores d. collects e. all of the above

e. all of the above

In most industries, the major costs of producing a product or service are incurred within a. research and development. b. management. c. marketing. d. management information systems. e. operations.

e. operations.