Sales Manager Stephen Edmonson Has Just Finished Reading a Printout

question 23

Multiple Choice

Sales manager Stephen Edmonson has just finished reading a printout of some statistics showing how his company's sales performance compares to that of competing firms. The statistics summarize a mass of raw figures into a few meaningful measures that Stephen will use to determine whether he needs to change his sales strategy. The statistics in the printout are:

• A) information, while the raw figures used to compute the statistics are data.
• B) data, while the raw figures used to compute the statistics are information.
• C) less useful to Stephen than the raw figures would have been, since summarizing the figures necessarily reduces their accuracy.
• D) an example of how managers have a tendency to oversimplify by reducing complex issues into a few simple numbers.

Understand the practical aspects and considerations in bond investment decisions.

Recognize different types of intelligences according to various theories.

Identify the role of aptitude and achievement tests in measuring intelligence and skills.

Recognize the historical development and purpose of intelligence testing.

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Definitions:

MM Model

Modigliani-Miller Model; a theory on capital structure that suggests the market value of a firm is determined by its earning power and the risk of its underlying assets.

Tax-Deductibility

Pertains to expenses that can be subtracted from gross income to reduce the total taxable income, thereby lowering the amount of tax owed.

Financial Leverage

Engaging borrowed assets to increase the anticipated yield from an investment.

Operating Leverage

The degree to which a company uses fixed operating costs, where a higher degree indicates that a small change in sales will have a larger impact on operating income.