Managers Must Be Prepared to Modify Their Strategy in Response

question 57

Multiple Choice

Managers must be prepared to modify their strategy in response to:

• A) changing circumstances that affect performance and their desire to improve the current strategy.
• B) competitor moves in the market and shifting needs of buyers.
• C) stagnating market and restrictive industrial opportunities.
• D) mounting evidence that the strategy is less effective.
• E) All of these.

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Definitions:

Return On Common Stockholders' Equity

A financial ratio that measures the amount of net income returned as a percentage of shareholders' equity, indicating the profitability of a company from the shareholders' perspective.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects cash from its credit sales by calculating the number of times average accounts receivable are collected during a period.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a period.

Days' Sales Uncollected

A financial metric that measures the average number of days it takes a company to collect payment after a sale has been made.