For Over 40 Years, Golden Creamery Has Been Mixing Up

question 15

Multiple Choice

For over 40 years, Golden Creamery has been mixing up fresh, gourmet ice cream for customers. The company originated in Dallas and now boasts stores in 35 states. The business has primarily expanded by selling franchises to qualified candidates. Golden Creamery executives realize that the firm's success depends upon the success of each franchise. In the past, each individual franchise owner determined the best method for screening applicants. However, as the firm grows, Golden Creamery executives want to standardize the hiring process by requiring all franchisees to use the same preemployment tests. Which of the following, if true, supports the argument that Golden Creamery should require franchise owners to use the firm's preemployment tests?

• A)Hourly employees at Golden Creamery stores typically remain with the company long enough to be promoted to management positions.
• B)Golden Creamery franchise owners pay an initial franchise fee and receive a percentage of sales royalties in return.
• C)Annual turnover rates for hourly employees of Golden Creamery stores are three times the rate of comparable businesses.
• D)Individuals interested in working at a Golden Creamery store can complete online applications on the firm's Web site.

Understand the concept and significance of days' sales uncollected and days' sales in inventory within business operations.

Apply formulae to determine various financial ratios such as current ratio, acid-test ratio, and debt to equity ratio from balance sheet data.

Evaluate a company's financial health and performance through common size percentages and trend analysis.

Compute and understand the implications of working capital, net income ratio, and earnings per share for a company's financial stability.

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