Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
Which of the following statements is true of the balanced-scorecard? It is one of the traditional ways of measuring firm performance. It attempts to provide a holistic perspective on firm performance. Its primary focus is to base a firm's strategic goals entirely on external performance dimensions. It is a more or less a one-dimensional metric of measuring competitive advantages of a firm. |
It attempts to provide a holistic perspective on firm performance. |
|
|
By selling a laptop at $900 for which consumers are willing to pay up to $1200, a consumer electronics firm makes a profit of $200 per unit. In this scenario, the economic value created is: |
500 Economic value is customers willingness to pay minus cost. If the company is making $200 profit from a $900 laptop, that means the cost is 700 and economic value created will be 1200-700=$500 |
|
|
Which of the following statements is true about accounting data? Accounting data are historical and thus backward-looking. Accounting data focus mostly on intangible assets, rather than tangible assets. Accounting data do not have to be adjusted in any manner to compare companies with different capital structures. Accounting data consider off-balance sheet items such as pension obligations. |
Accounting data are historical and thus backward-looking. |
|
|
Using the _____ approach, managers audit their company's fulfillment to stakeholders as conscientiously as they track its financial performance |
Triple-bottom line |
|
|
Which of the following is NOT a factor that makes total return to shareholders and market capitalization unreliable measures of company performance? Variations in exchange rates Effects of the unemployment rate Unpredictability of return on revenue Stock price volatility |
Unpredictability of return on revenue |
|
|
Both Vibrant Phones Inc. and Oryxo Inc. incur a cost of $200 to manufacture a single unit of a cell phone. However, Vibrant Phones creates more economic value than Oryxo does. What does this imply? |
Vibrant Phones can sell its products at a better price than Oryxo. |
|
|
True Machine Inc. and One Electrona Inc. are two competing consumer electronics companies. While True Machine's COGS/Revenue is 66%, One Electrona's is 74%. What do you infer from this financial data? |
True Machine's profit margin is higher than that of One Electrona. |
|
|
The translation of strategy into action takes place in the firm's _____, which details the firm's competitive tactics and initiatives. |
business model |
|
|
Value is determined by the perceived benefits a good or service provides to a(n) |
Buyer |
|
|
Which of the following statements is NOT true of competitive advantage? Competitive advantage is reflected in superior firm performance. Competitive advantage is a multifaceted concept. Competitive advantage is an absolute measure. Competitive advantage has been linked to a firm's triple bottom line. |
Competitive advantage is an absolute measure. |
