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Business Analysis

Please provide correct reasons for your choice:

1. As a small business owner, Brittany has found that the Internet has:
a. reduced her market opportunities
b. increased the competition in her industry
c. given her more control in the buyer-seller relationship
d. reduced the impact of change in her business

2. Pam is a sales manager for Paradise Beauty Products. She has told her sales people that she expects each of them to increase their customer contacts by at least 5 percent in the next month. Pam has set a(n):
a. procedural policy
b. functional objective
c. policy guide
d. performance standard

3. Martin Maiers works as a marketing manager at a major manufacturing firm. He recently sent a memo to his boss promoting the idea of producing green products. This means that Martin wants to:
a. Produce only products that have the potential for high profits.
b. Establish a new policy that prevents firms from producing products that have not been given final approval (received the "green light") by the marketing department.
c. Produce products using cross-functional teams
d. Produce products that do not harm the environment.

4. The purpose of the current ratio is to evaluate the firm's ability to:
a. generate sale with a given level of current assets
b. utilize current assets profitably
c. pay its bills in the short run
d. effectively use borrowed funds

5. Akiko is a financial manager. Her job is likely to include all of the following activities except:
a. preparing a cash flow analysis
b. preparing financial statements
c. acquiring funds for the firm
d. planning for the expenditure of funds

6. The $1,000 face value bonds issue by the Springfield Fabrication Corporation are perceived by investors as being less attractive than other bonds sold by other businesses at the same time. The most likely selling price for these bonds in the market would be:
a. $1,000
b. $1,200
c. $875
d. $1,100

Solution Preview

1. As a small business owner, Brittany has found that the Internet has:
<br>B. Increased the competition in her industry. With the Internet people can surf different websites to find the best deal. Since people go for the best deals this increases the competition and drives average prices lower.
<br>
<br>2. Pam is a sales manager for Paradise Beauty Products. She has told her sales people that she expects each of them to increase their customer contacts by at least 5 percent in the next month. Pam has ...

Solution Summary

This solution looks at several business analysis situations: Internet, Increase Contacts, Green Products, Current Ratio, Financial Management, and Bonds

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