According to Recent Surveys, What Is an Important Difference Between

question 1

Multiple Choice

According to recent surveys, what is an important difference between managers of small and medium sized businesses in Canada and the United States?

• A) Canadian managers are able to react more quickly to changes because on average their companies are smaller.
• B) Canadian managers are better able to cope with late paying customers by delaying payments to their suppliers due to a different legal system.
• C) U.S. managers make better us of information technology because they focus more on understanding their information needs.
• D) U.S. managers have a more effective inventory management system because they have good planning and budgeting systems in place.
• E) Although 63% of Canadian managers prepare a cash forecast, U.S. managers have cash balances that are proportionately higher for small businesses.

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Definitions:

Retained Earnings

Retained earnings refer to the portion of net income left over after dividends are paid out to shareholders, which is reinvested into the company.

Retroactive Restatement

Adjusting previously reported financial statements to reflect better understanding or corrections of past errors.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Common Stock

Represents ownership shares in a corporation, giving holders a claim on part of the company’s assets and earnings.