A Restaurant Chain Wants to Improve Its Marketing Information Function

question 143

Multiple Choice

A restaurant chain wants to improve its marketing information function by doing regular customer surveys using a random sample of consumers, and by placing comment cards on the tables in all of its locations. This effort would likely be financed with:

• A) Marketing capital.
• B) Working capital.
• C) Research capital.
• D) Long-term capital.
• E) None of these.

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Definitions:

Times Interest Earned Ratio

A financial ratio that measures a company's ability to honor its debt payments by comparing its interest expense to its operating income.

Operating Cycle

The duration between the purchase of inventory by a business and the receipt of cash from accounts receivable, indicating the speed at which a company turns inventory into cash.

Equity Multiplier

A financial ratio that measures a company's leverage by comparing its total assets to its total equity.

Year 2

The second year in a specified timeframe, often used in financial and performance analysis.