Which of the Following Is Defined as the Collection and Interpretation

question 53

Multiple Choice

Which of the following is defined as the collection and interpretation of information about forces, events, and relationships that may affect the organization?

• A)market sampling
• B)an internal audit
• C)opportunity analysis
• D)environmental scanning

Analyze the implications of operating cycle duration on company financing needs.

Evaluate the effect of asset acquisitions and disposals on company financial ratios.

Understand the relationship between profitability ratios and company financial decisions.

Understand the computation and interpretation of basic financial ratios, including net profit margin percentage, debt-to-equity ratio, and price-earnings ratio.

---

Definitions:

Income Statement

A financial report that shows a company's revenues and expenses over a specific period, ultimately revealing the net profit or loss.

Property, Plant

Refers to the long-term assets owned by a company that are used in its operations, including land, buildings, and machinery.

Operating Activities

The day-to-day functions of a business related to producing and selling goods or services, which are reflected in the company's cash flow.

Cash Dividends

Payments made by a corporation to its shareholder members. It's the portion of corporate profits paid out to stockholders.