STRATEGIC MANAGEMENT CHAPTER 5
QUESTIONS WITH 100% CORRECT
ANSWERS { GRADED A+}
The firm's accounting profitability, ability to create shareholder value, and ability
to generate economic value tend to be ______.
Multiple choice question.
unrealistically bound
unrelated
perpendicularly related
correlated - ✔✔correlated
Which of the following correctly describe the information used for comparing the
performance of public companies based on accounting profitability? (Check all
that apply.)
,Multiple select question.
The relative performance is evaluated using standardized financial metrics.
The information must be purchased from private investment banks.
The information is derived from such data as income statements and balance
sheets.
The information is filed in a 10-K report. - ✔✔The relative performance is
evaluated using standardized financial metrics.
The information is derived from such data as income statements and balance
sheets.
The information is filed in a 10-K report.
In general, a firm generates ______ when its cost of capital is lower than its ROIC.
Multiple choice question.
debt
competition
value
overhead - ✔✔Value
, Which of the following are considered off-balance sheet items? (Check all that
apply.)
Multiple select question.
owned assets
operating leases
cash
pension obligations - ✔✔operating leases
pension obligations
Which of the following is true about shareholders of a public company?
Multiple choice question.
They must be individuals who are employed by the company.
They are eligible to be elected as owners of the company.
Those qualified as owners must own at least 100 shares.
They can be individuals or organizations. - ✔✔They can be individuals or
organizations.
QUESTIONS WITH 100% CORRECT
ANSWERS { GRADED A+}
The firm's accounting profitability, ability to create shareholder value, and ability
to generate economic value tend to be ______.
Multiple choice question.
unrealistically bound
unrelated
perpendicularly related
correlated - ✔✔correlated
Which of the following correctly describe the information used for comparing the
performance of public companies based on accounting profitability? (Check all
that apply.)
,Multiple select question.
The relative performance is evaluated using standardized financial metrics.
The information must be purchased from private investment banks.
The information is derived from such data as income statements and balance
sheets.
The information is filed in a 10-K report. - ✔✔The relative performance is
evaluated using standardized financial metrics.
The information is derived from such data as income statements and balance
sheets.
The information is filed in a 10-K report.
In general, a firm generates ______ when its cost of capital is lower than its ROIC.
Multiple choice question.
debt
competition
value
overhead - ✔✔Value
, Which of the following are considered off-balance sheet items? (Check all that
apply.)
Multiple select question.
owned assets
operating leases
cash
pension obligations - ✔✔operating leases
pension obligations
Which of the following is true about shareholders of a public company?
Multiple choice question.
They must be individuals who are employed by the company.
They are eligible to be elected as owners of the company.
Those qualified as owners must own at least 100 shares.
They can be individuals or organizations. - ✔✔They can be individuals or
organizations.
