Which of the Following Is a Reason Behind Wal-Mart's Success

question 60

Multiple Choice

Which of the following is a reason behind Wal-Mart's success?

• A)Absence of unionization and encouragement of merit-based promotions.
• B)Complete control over the market price.
• C)Presence of regional managers in the field rather than at headquarters.
• D)Centralized control and inspection over the functioning of store managers.

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Definitions:

Equity Multiplier

A financial leverage ratio that indicates the portion of a company’s assets that are financed by stockholder's equity, calculated by dividing total assets by total shareholders' equity.

Financial Leverage

Use of borrowed funds to increase the potential return of an investment.

Basic Earning Power

A financial metric that measures a firm's ability to generate earnings from its operations before the impact of taxes and financing costs.

ACP

Average Collection Period, indicating the average number of days it takes a company to collect payments from its credit sales.