Assignment:
1. In the real world, ___ regularly shift to counter EPS and to reflect a change in the quality earnings, as measured by the progression in a firm s return on capital. And thus, it is extremely dangerous to have bonuses on earnings and earnings per share.
a. P/E multiples
b. capital structure
c. accounts payable
d. net cash How levels
e. the breakeven point
2. The Russell 3000 stocks are actually far more highly correlated with___ than with rapid earnings growth.
a. leverage
b. net earnings
c. return on equity
d. return on capital
e. operating leverage
How information gives you competitive advantage
3. In value chain analysis, a company's value activities fall into generic categories. Secondary activities are those involved in___.
a. The physical creation of the product
b. The delivery to buyers
c. Support and servicing after the sale.
d. All of the above
e. None of the above
4. Linkages exist when the way in which one activity is performed affects the cost or effectiveness of other activities. These often create___ in performing different activities that should be optimized.
a. Competitive advantages
b. Economics of Scope
c. Trade-offs
d. Synergies
e. Value-adding activities
Why satisfied customers defect
5. The authors argue that the ultimate measure of loyally is___.
a. customer referrals and endorsements
b. Primary behavior
c. secondary behavior
d. intent to repurchase
e. share of purchases in the category.