Goldilochs Inc

question 32

Multiple Choice

Goldilochs Inc. reported sales of $8 million and net income of $1.5 million. The firm has $12 million in total assets and $500,000 in current liabilities. The firm currently pays out 25% of its net income to shareholders. Assume that all assets and current liabilities are expected to grow with sales. If Goldilochs does not want to rely on any external sources of funds, what is the most sales can grow (in percent) ?

• A) 11.13%
• B) 10.84%
• C) 10.28%
• D) 9.69%

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Definitions:

Upselling

A sales technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.

Analytical CRM

A type of Customer Relationship Management (CRM) focused on capturing, interpreting, and analyzing customer data to improve decision-making and customer relationships.

Customer Behavior

The study of how individual customers, groups or organizations select, buy, use, and dispose of goods, services, ideas, or experiences.

BI

Business Intelligence, the strategies and technologies used by enterprises for data analysis of business information.