Big Mac's and Small Dog's Are Two fiRms That Are

question 151

Multiple Choice

Big Mac's and Small Dog's are two firms that are equal in every way except for their retention ratios. Big Mac's has a 50 percent retention ratio. Small Dog's has a 60 percent retention ratio. Given this
Difference,

• A) Small Dog's profit margin next year will exceed the profit margin of Big Mac's.
• B) Small Dog's dividend payout ratio will exceed that of Big Mac's.
• C) Big Mac's plowback ratio will exceed that of Small Dog's.
• D) Big Mac's has a higher internal rate of growth than does Small Dog's.
• E) Small Dog's has a higher sustainable rate of growth than does Big Mac's.

Understand the implications of NSF checks and bank service charges on cash management.

Calculate and interpret the Days' Cash on Hand ratio.

Understand the establishment and replenishment of a petty cash fund.

Recognize the importance of maintaining a minimum cash balance (compensating balances).

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Definitions:

Participative

Involving or allowing participation, especially referring to leadership or management styles that involve employees in decision-making processes.

Servant Leadership

A leadership philosophy which emphasizes the importance of serving others and prioritizing the well-being and development of followers over self-interest.

Behavioral Perspective

This perspective focuses on understanding how behavior is influenced by interactions with the environment, emphasizing the importance of learned behaviors and conditioning in shaping actions.

People-Oriented

Refers to leadership or organizational styles that prioritize the welfare, development, and involvement of individuals within the organization.