When the Pillsbury Company Rejected the Proposal of Their Employee

question 9

Multiple Choice

When the Pillsbury Company rejected the proposal of their employee James D.Watkins that microwavable packaged food was too risky,it was focused on defending its strong position in the marketplace through incremental line extensions and product improvements.This is typical of a(n) :

• A)prospector strategy
• B)reactor strategy
• C)analyser strategy
• D)diversification strategy

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Definitions:

Liquidity

The ability of an asset to be quickly converted into cash without significantly affecting its market price.

Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Maker

In finance, the party that creates or issues a promissory note.

Petty Cash Fund

A small amount of cash kept on hand for minor or incidental expenses.