Scenario D

question 97

Multiple Choice

Scenario D.Jimena works for a small company that makes nut butters from ingredients like cashews and macadamia nuts,and jams from mixtures of tropical fruits.She reports to the CFO.It is her job to predict the costs of raw materials for the next five years.She uses various research sources,including the news,to learn who the competitors are and what they have been doing.In fact,she subscribes to an analyst e-newsletter that tells her about crop availability and weather conditions all around the globe.Every month she develops a spreadsheet for her boss indicating the likely costs of fruits and nuts given the type of weather conditions expected in each area of the world and thus the availability of particular crops.She is also involved in a team that is investigating how to cut production costs.They have recently met with Spicy Sides,a company that produces jars of condiments.Spicy Sides is considered the top company in the condiment industry,especially in its knowledge of how to pack food products in jars.Jimena's team is comparing their processes to those of Spicy Sides to see how they might improve.
-The information Jimena is using to compete in a better way is called

• A)mission statement.
• B)competitive intelligence.
• C)best-case scenario.
• D)organizational database.
• E)knowledge document.

---

Definitions:

Effective Rate

The actual interest rate of an investment or loan, taking into account the effects of compounding.

Compounded Semi-Annually

Interest calculation method where the interest is added to the principal sum twice a year, causing the interest to earn interest.

Strip Bond

A type of bond where the principal and regular coupon payments have been separated and are sold individually as zero-coupon bonds.

Interest

The cost of borrowing money, typically expressed as a percentage of the borrowed amount, paid by the borrower to the lender.