The Technique Used to Help Strategists Choose Among Alternative Choices

question 10

Multiple Choice

The technique used to help strategists choose among alternative choices by defining the task environment, developing a set of various forecasts, and using proforma financial statements is called

• A) decision trees.
• B) S.W.O.T. analysis.
• C) industry scenarios.
• D) corporate scenarios.
• E) Capital Asset Pricing Model.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets, calculated as current assets divided by current liabilities.

Short-Term Notes Payable

Short-term debts or obligations that are due to be paid within one year, often in the form of promissory notes.

Accruals

Accounting adjustments for revenues that have been earned but not yet received, or expenses that have been incurred but not yet paid.

EBITDA Coverage Ratio

A financial ratio that measures a company's ability to pay off its operating expenses and debts with its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).