Boards Realize That the Best Way to Force a Change

question 78

Multiple Choice

Boards realize that the best way to force a change in strategy is to

• A) hire a new CEO who has no connections to the current strategy.
• B) hire an outsider with no experience in the industry.
• C) hire an insider dissatisfied with the status quo.
• D) continue with the current CEO.
• E) increase the compensation package for the CEO.

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Definitions:

Average Sale Period

The average time it takes for a company to complete a sales cycle from the initial contact to the final sale.

Average Sale Period

A financial metric that calculates the average time it takes for a company to sell its inventory, indicating the efficiency of sales and inventory management.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers, indicating the efficiency of the company’s credit and collection policies.

Current Ratio

A measure of a business's capability to meet its obligations due in less than one year, focusing on its short-term financial health.