QUESTION 17 3 pc A firm may have several capabilities. Which of the following terms indicate a firm's best capability that it emphasues and performs particularly well? A. Core competence 8. Unique capability C. Cultural distinctiveness OD. Tangible capability QUESTION 18 This firm's quick ratio is: Average total assets - $700 Current liabilities $120 Cash and cash equivalents - 30 Sales - $1800 Total assets: 800 Net current receivable = 40 Short-term investment: 50 Cost of goods sold - $550 Total liabilities (debt) - 5600 Net interest expenses $25 Average inventory - 560 EBIT-$500 Shareholders' equity: 200 Accounts Payable-580 General Operating Expenses 170 Net Earings $300 O A. (25+30+60)/120 O B.(30+50+80) / 120 O c.(30+25+40) / 120 O D. (30+50+40) / 120 QUESTION 19 3 por This firm's ROA is: Average total assets - $700 Current liabilities $120 Cash and cash equivalents - 30 Sales S1800 Total assets: 800 Net current receivable 40 Short-term investment: 50 Cost of goods sold - $550 Total liabilities (debt) - 5600 Net interest expenses - $25 Average inventory - 560 EBIT - $500 Shareholders' equity: 200 Accounts Payable-580 General Operating Expenses-170 Net Earnings $300 O A. 800/300 O B. 300/800 O C. 700/300 OD 300/700 QUESTION 20 is different from other kinds of tangible and intangible resources in the sense that it plays a critical role in shaping a firm's capabilities. In other words, it determines how a firm will employ its tangible and intangible resources and what kinds of capabilities a firm will build up in the long term. A Brand value B. CEO leadership C. R&D facilities D. Financial resources QUESTION 21 Which of the following is NOT a proper goal statement? A. Let's increase net earnings this month B. Let's increase 10 more stores by the end of this quarter C. Let's reduce the number of customer complaints below 2,000 this year D. Let's aim for $10 millions for total revenues by the end of this year QUESTION 22 (T/F) HBR article, "Competing on Resources" by Callis and Montgomery: Companies need different kinds of resources to produce goods and service. For these companies, some resources will be more valuable than other resources. In general, those resources easy to acquire from resource suppliers are strategically more valuable than those difficult to acquire. True False QUESTION 23 Once strategies have been formulated, they need to be implemented. In order to successfully implement strategies, firms should be well-equipped with a proper set of: A. tasks, people, formal structure and informal structure B. mission, goal, strategy and tactics C. external analysis, internal analysis, and performance measures D. mission, goal, external analysis and internal analysis QUESTION 24 Which of the following is the correct term for a in this income statement? Income Statement Sales Cost of Goods Sold General Operating Expenses Other Revenues 2000 400 1600 400 1200 200 1400 (e) 200 600 100 500 Net Interest expense Income Taxes ) Dividends to shareholder Retained earnings O A. Net Income OB. Gross profit on Sales OC.EBIT O D. Operating Income