Environmental Scanning Is a Search for Events or Trends That

question 35

True/False

Environmental scanning is a search for events or trends that present either threats or opportunities to the organization.

---

Definitions:

Stock Price

This is the current price at which a share of a company is bought or sold in the market.

Insolvent Firm

A business that cannot meet its financial obligations as they come due because its liabilities exceed its assets.

Prior Earnings

The amount of profit a company made in a preceding period, often used as a benchmark or comparison for current financial performance.

Dividend Irrelevance Theory

The theory that suggests that dividend policy has no effect on either the price of a firm's stock or its cost of capital.