You Work as the Sales Manager for a Company That

question 52

Multiple Choice

You work as the sales manager for a company that sells paper supplies to businesses of all sizes. Because the profit margins are razor-thin, you need to ensure that you are getting the very best prices on all paper supplies from the manufacturers. When reviewing the quarterly profit statement, you realize that your costs are higher than they should be, and you trace the higher costs back to an employee who has been lax about getting competitive bids to ensure the lowest prices. When you conduct your research to determine the reason for the higher costs, and take action to bring those costs back down, in which of the key management processes are you taking part?

• A) planning
• B) organizing
• C) leading
• D) controlling
• E) mentoring

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in alignment with the goal of shareholder wealth maximization.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values, often used to assess risk in investment portfolios.

Investment's Cash Flows

The cash that is generated or expended over the course of an investment's life.

Real Options

An approach in finance where choices are treated as derivative securities that managers can use to maximise returns while deferring investment decisions.