BLMA Models, the Company Profiled in the Opening Feature in Chapter

question 21

Multiple Choice

BLMA Models, the company profiled in the opening feature in Chapter 8, sells model trains and model train accessories. According to the feature, the biggest challenge the company has faced is:

• A) cash flow management
• B) constructing realistic pro forma financial statements
• C) preparing budgets
• D) hiring qualified personnel
• E) achieving profitability

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Definitions:

Poor Product Designs

Refers to products that are inefficient, unappealing, or unsafe due to inadequate design, often leading to consumer dissatisfaction or failure in the market.

Cross-Selling

A sales strategy where a company proposes additional products or services to a customer based on previous purchases.

Ineffective Management Oversight

A situation where the supervisory activities performed by managers or governing bodies fail to detect or prevent poor performance and non-compliance with policies and regulations.

Earned Media

Publicity gained through promotional efforts other than paid advertising, such as word of mouth or editorial coverage.