When Evaluating the Potential of Possible Opportunities (Product-Market Strategies), a Marketing

question 219

Multiple Choice

When evaluating the potential of possible opportunities (product-market strategies) , a marketing manager should:

• A) evaluate each opportunity over the life of the project, since short-term losses may hide long-term profitability.
• B) avoid using quantitative criteria because they tend to oversimplify the problem.
• C) look at each opportunity on its own, since there is no good way to compare different plans.
• D) look only at internal resources, since they are controllable.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business.

Fixed Assets

Long-term tangible assets used in the operations of a business and not expected to be converted to cash in the near term.

Times Interest Earned

Times Interest Earned is a financial ratio that measures a company's ability to meet its debt obligations based on its current earnings before interest and taxes (EBIT).

Days' Sales in Inventory

A financial metric that shows the average duration it takes for a company to turn its inventory into sales.