Strategic Decisions Involve Long-Term Actions Whose Consequences May Not Be

question 100

True/False

Strategic decisions involve long-term actions whose consequences may not be realized for years.

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Definitions:

Horizontal Analysis

A method of financial analysis in which financial statements figures for a period are compared to those of the previous period to determine the changes in dollar amounts and percentages.

Liquidity Ratios

Financial metrics used to measure a company's ability to pay off its short-term liabilities with its short-term assets.

Dollar Amount Changes

Alterations in financial figures, reflecting increases or decreases in values such as revenues, expenses, assets, or liabilities over a period.

Fixed Assets

Long-term tangible assets used in the operation of a business that are not expected to be converted into cash within a year.