Chapter 8

Which of the following is NOT an issue that may require finance and accounting policies, decisions, analyses, and actions when implementing strategies?

• Raising capital through debt or equity issuance

• 1. Determining an appropriate dividend payout ratio

• 1. Choosing a market segmentation strategy for product development

• 1. Deciding whether to purchase additional treasury stock

When a firm buys more of its own common​ stock, what is the effect on the​ firm's earnings per share​ (EPS) value?

• The effect varies by size of firm.

• It goes down.

• It goes up.

• There is no effect.

What is another term for​ profits?

• Future income

• Revenue

• Net revenue

• Earning

The shares of stock of a firm that is owned by the firm itself are called​ _____.

• treasury stock

• convertible stock

• retained earnings

• goodwill

Which of the following is NOT an R&D approach for implementing strategies?

• Being the first firm to market new technological products

•  Innovatively imitating successful products to minimize risks and costs

• Mass-producing products similar to but less expensive than recently introduced products

• Focusing solely on customer feedback for product design

Why is having an effective Management Information System (MIS) important for a firm?

• It ensures the firm has the latest marketing strategies.

• It differentiates successful firms from unsuccessful ones.

• It replaces the need for strategic management.

• It eliminates the need for financial analysis.

What is a key characteristic of business analytics as a management information system technique?

• It focuses solely on analyzing past performance.

• It uses software to predict future outcomes based on past data.

• It avoids using machine learning or data mining techniques.

• It is only used for marketing purposes.