In a Five-Year Study, Researchers Conducted In-Depth Analysis of 160

question 14

Multiple Choice

In a five-year study, researchers conducted in-depth analysis of 160 companies and more than 200 management tools and techniques. What was their principal finding?

• A) Supply chain management was the most critical element in stellar business performance.
• B) Customer relationship management was more effective than product development.
• C) The Internet was more effective in terms of long-term sales success than the use of retail outlets or direct marketing tactics such as catalogs.
• D) Three major management tools-supply chain management, customer relationship management, and the use of an intranet-were equally beneficial in terms of business performance.
• E) Individual management tools and techniques had no direct relationship to superior business performance in the companies that were studied.

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Definitions:

Equity Multiplier

The equity multiplier is a financial ratio that measures a company's leverage by dividing its total assets by its total shareholders' equity, indicating how much of the assets are financed by equity.

Market-To-Book Ratio

A financial valuation metric comparing a company's stock market value to its book value.

Price-Earnings Ratio

A valuation metric that compares a company's share price to its per-share earnings, used to evaluate if a stock is over or under-valued.

Book Value Per Share

Book Value Per Share is a financial metric that measures a company's net asset value on a per-share basis, calculated by dividing total assets minus liabilities by the number of shares outstanding.