Which One of the Following Is Not a Reliable Measure

question 126

Multiple Choice

Which one of the following is not a reliable measure of how well a company's current strategy is working?

• A) Whether the company's sales are growing faster, slower, or about the same pace as the industry as a whole, thus resulting in a rising, falling, or stable market share
• B) Whether it has a larger number of competitive assets than competitive liabilities and whether it has a superior quality product
• C) The firm's image and reputation with its customers
• D) Whether its profit margins are rising or falling and how large its margins are relative to those of its rivals
• E) How well the firm stacks up against rivals on technology, product innovation, customer service, product quality, price, speed in getting newly developed products to market, and other relevant factors on which buyers base their choice of which brand to purchase

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Definitions:

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Net Cash

The amount of cash available after all cash inflows and outflows have been accounted for.

Financing Activities

Transactions and business events that involve raising capital and repaying investors, including issuing equity and debt, dividend payments, and loan repayments.

Net Cash

The amount of cash that remains after deducting cash outflows from cash inflows, reflecting a company's cash liquidity.