Ernesto's Business Is Growing at a Steady Rate, but He

question 150

Multiple Choice

Ernesto's business is growing at a steady rate, but he knew he can always do better! In order to capture more business, he would have to hire a few more sales professionals to sell into new markets. As he contemplated his staffing needs, his sister who worked in HR informed him that he needed to do a job analysis before hiring. Which of the following would be a logical part of a job analysis for a sales position?

• A) asking the current sales reps to create a log of their daily and weekly activities
• B) asking the HR specialist to create an online application for the position(s)
• C) training new recruits
• D) determining how many sales reps other companies typically have on staff

---

Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by shareholders' equity.

Times Interest Earned

A ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its total interest expenses.

Debt to Equity

A financial metric showing the comparative amount of debt and shareholders' equity utilized to fund a company's assets.