2 A member of your management team says he has reduced the collection period from 73 days to 50 days. Did this hurt or help the company?

3 High technology industries like biotechnology and software companies always have higher ROICs and ROEs than low technology firms like retail clothing, restaurants and theaters because they are, after all, high technology ?

True False

4 The following are discovery skills:

(A) Risk management

(B) Project management

(C) Experimenting (D) Porters 5 forces

(E) Hedging

5 Strategy, as we discussed it, is most about (circle all that apply):

(A) Choosing what to focus on

(B) Integrating the activities of the firm

(C) Determining the optimal debt-to-equity ratio of the firm

(D) Determining how to finance a new project

(E) Hedging

6 Net income of an industry can be expected to be LOWER if the following are true (circle all that apply) :

(A) The power of suppliers is low

(B) The power of customers is high

(C) There are low barriers to entry

(D) Substitutes are not a threat