A. Whether to increase sales, maximize distribution capacity or increase efficiency to meet growing demand
B. Whether to improve productivity, obtain new operating capital or generate new sales growth
C. Whether to acquire competitors with greater market share or merge with more successful companies
D. Whether to reinvest in existing products, create new products or maximize profits with current products as long as possible
A. Because the best interests of the organization take priority, which can lead to difficult decisions and implementation issues
B. Because the internal and external environments are constantly changing
C. Because strong business acumen is required for all compensation decisions
D. Because they are emotional issues and stakeholders have many vested interests
A. Cost of goods sold
B. Expenses plus taxes and depreciation
C. Gross profit minus expenses
D. Revenue minus cost of goods sold
A. They usually require more detail for senior employees regarding plan details and performance and the needs from one employee group to another can vary greatly.
B. They should be kept to a minimum for employees at all levels to maximize efficiency and efforts can be focused only on those who have questions.
C. They generally require a greater degree of detail for lower level employees who have less of an understanding of pay plan design.
D. They tend to be fairly consistent because the elements of pay may differ, but the concerns are universal.
A. The same quarter in the previous year, plus the current six-month or nine-month cumulative comparables
B. The aggregate performance of the same quarter in the previous three years
C. The budget
D. The previous quarter
A. The annual report is required and the quarterly reports, while commonly used, are optional.
B. The quarterly reports are not as detailed as annual reports, and might not match due to changing accounting estimates over the year.
C. The cumulative information on the four quarterly reports adds up to the information on the annual report.
D. The quarterly reports are more detailed. The annual report provides similar data in summary form.
A. A Cash Cow
B. A Market Leader
C. A Question Mark
D. A Star
A. The change in working capital over a specific period of time, typically one year
B. A company's efficiency in converting short-term capital into cash
C. A company's mean capital expenditure per employee
D. The amount of cash needed to meet the company's short-term obligations
