The Proper Matching of What a Firm Can Do with What

question 29

Multiple Choice

The proper matching of what a firm can do with what it might do allows the firm to:

• A) Balance the internal characteristics of the firm with the characteristics of the external environment
• B) Overcome the rigidity and inertia resulting from a history of success
• C) Develop its vision, pursue its mission, and select and implement its strategies
• D) Develop core competencies based on human knowledge

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Definitions:

Average Sale Period

The average amount of time it takes for a company to convert its inventory into sales.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell the goods, and receive cash from sales.

Average Sale Period

The average time it takes for a company to convert its inventory into sales.

Times Interest Earned

An indicator of how well a business can fulfill its debt repayments by evaluating its earnings prior to interest and taxes against its interest expenditures.