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Scenario 9-4 as Part of Your Duties as Marketing Manager for a for a Company

question 6

Multiple Choice

Scenario 9-4
As part of your duties as marketing manager for a company that manufactures exercise equipment for in-home use, you decide to champion your company's jump onto the Internet. The job is especially tough, since many of your bosses have no idea what it entails. In fact, you suspect that the only reason they are considering devoting money to the project is that your major competitor is building a Web presence, and your bosses don't want to be left behind. Your task is to educate your bosses so they will fund the effort.
-(Scenario 9-4) Another boss expresses her concern that the company will spend a bunch of money building a website and no one will come. She asks about your plans to promote the site. You tell her that one recommendation you are making is to register the site with Yahoo!, choosing the keywords to associate with your site carefully. You explain further that this means that

Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and ability to fund day-to-day operations.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Current Assets

Resources a business plans to change into cash, dispose of, or use up within either a year or its operating cycle, depending on which period extends further.

Current Liabilities

Financial obligations of a business that are due and payable within one year.