Which of the Following Is a Drawback of the Production-Orientation

question 26

Multiple Choice

Which of the following is a drawback of the production-orientation philosophy?

• A)It ignores the importance of assessing a firm's internal capabilities.
• B)It overlooks the importance of market research.
• C)It places little emphasis on the assessment of manufacturing plants and facilities.
• D)It gives importance to the sales function over other functions.

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Definitions:

Inventory Turnover Ratio

A measure of how quickly a company sells its inventory in a given period, calculated by dividing the cost of goods sold by the average inventory.

Liquidity Ratio

A financial metric indicating how quickly a company can convert assets into cash to meet short-term obligations.

Return On Assets Ratio

A financial metric that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate profits.