Al Dunlap Was Recognized as a Turnaround Artist for Firms

question 49

Multiple Choice

Al Dunlap was recognized as a turnaround artist for firms experiencing financial and performance difficulties.When Dunlap arrived at a firm,downsizing usually followed.Dunlap received the nickname,"Chainsaw Al" due to his cost-cutting abilities.When Dunlap arrived at a firm he would recommend major restructuring and though they were not supportive of his tactics,his managers implemented his plan.Dunlap had ___________ power.

• A)legitimate
• B)likability
• C)referent
• D)informational

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Definitions:

Price-Earnings

A ratio used to evaluate a company's stock price relative to its per-share earnings, indicating the value that investors put on a company's earning power.

Dividend Yield

Dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue—the higher the number, the better the performance.

Total Assets

The aggregate of all resources owned by a company, valued in monetary terms, including both current and non-current assets.