Why Is Operations Not Perceived as Important

question 57

Multiple Choice

Why is operations not perceived as important?

• A)Operations is less crucial to the success of modern businesses than other functions
• B)Many senior executives began their careers in other functions and learned to take operations for granted
• C)Successful mergers or "deals" is where the action is these days and operations plays only a minor role in their success
• D)Operations and supply improvement projects are typically small,short-term and not strategic
• E)Operational coordination is best achieved by general management or the sales function

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Definitions:

Profit Margin

A financial ratio that measures the amount of net income earned with each dollar of sales by comparing profit to revenue.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations based on its current earnings.

Price-earnings

A financial ratio that measures the market value of a stock in relation to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Earnings Per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock.