Financial Analysis: Sources of Information
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Questions and Answers

What is the primary purpose of financial analysis in an organization?

  • To analyze the factors that influence the operations and growth of an organization (correct)
  • To provide external information to the public
  • To create personnel files and trade secrets
  • To identify internal sources of information

    • What is an example of internal information?

  • Newspaper articles
  • Online databases
  • Minutes of board meetings (correct)
  • Television programs

    • What is the main advantage of online information over print information?

  • It is less expensive
  • It is more reliable
  • It is more easily accessible
  • It can overcome the fragmentation of published information (correct)

    • What is a limitation of television and radio media as a source of business information?

    <p>It is not tailored to narrow niche audiences</p> Signup and view all the answers

    What is CD-ROM information?

    <p>A popular alternative to online services</p> Signup and view all the answers

    What is the main advantage of online vendors over CD-ROM information?

    <p>They offer global search capabilities</p> Signup and view all the answers

    What does the ecological environment refer to?

    <p>The physical world, such as climate, water bodies, land masses, and animals</p> Signup and view all the answers

    What is the primary purpose of profitability analysis?

    <p>To maximize a company's profit and identify growth opportunities</p> Signup and view all the answers

    What does margin ratio represent?

    <p>The company's ability to convert sales into profits</p> Signup and view all the answers

    What can profitability analysis help with?

    <p>Identifying the most profitable products and services</p> Signup and view all the answers

    What is one of the examples of margin ratio?

    <p>All of the above</p> Signup and view all the answers

    Why is it important to understand a company's ability to convert sales into profits?

    <p>To analyze the company's financial status during a specific period</p> Signup and view all the answers

    What is the primary difference between PESTLE analysis and SWOT analysis?

    <p>PESTLE analysis identifies key environmental elements, whereas SWOT analysis focuses on strengths, weaknesses, opportunities, and threats</p> Signup and view all the answers

    What is the primary concern for every strategist during strategy implementation?

    <p>Measuring the success of strategy implementation</p> Signup and view all the answers

    What is a key factor to consider when conducting a business environment scan of political influences?

    <p>Overall government stability</p> Signup and view all the answers

    Which of the following economic factors affects consumers' buying power?

    <p>Inflation rate</p> Signup and view all the answers

    What is the purpose of strategic control in an organization?

    <p>To measure organizational progress towards achieving objectives</p> Signup and view all the answers

    What is a key aspect of social factors in PESTLE analysis?

    <p>Socio-cultural norms and values</p> Signup and view all the answers

    Why is it essential to integrate strategic planning and control?

    <p>To ensure the alignment of control activities with organizational objectives</p> Signup and view all the answers

    What is a key aspect of technological factors in PESTLE analysis?

    <p>Availability of artificial intelligence and automation</p> Signup and view all the answers

    What is the outcome of measuring organizational progress during strategy implementation?

    <p>Remedial actions are taken at the appropriate time</p> Signup and view all the answers

    What is a key challenge for businesses operating globally in terms of legal factors?

    <p>Complying with the laws of the native country and the countries where they operate</p> Signup and view all the answers

    What is the role of control in strategic management?

    <p>To provide inputs for adjusting the strategic plan</p> Signup and view all the answers

    How do organizations progress over time through strategic management?

    <p>By taking strategic actions, implementing them, and finding their results</p> Signup and view all the answers

    What is asset management primarily concerned with?

    <p>Managing assets in a cost-effective manner</p> Signup and view all the answers

    What is the primary focus of strategic control?

    <p>Tracking and adjusting strategic plans</p> Signup and view all the answers

    What is the main difference between strategic control and operational control?

    <p>Strategic control handles uncertainty and ambiguity</p> Signup and view all the answers

    What is the purpose of strategic control in an organization?

    <p>To ensure the organization is achieving its objectives</p> Signup and view all the answers

    What type of assets are roads, tunnels, and bridges examples of?

    <p>Physical assets</p> Signup and view all the answers

    How many major types of strategic control are mentioned in the text?

    <p>4</p> Signup and view all the answers

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