Analysis and Forecasting Techniques Paper 8

1

Tarleton Company operates several retail stores. To support the company’s long-term goals, operating income should be at least 10% of sales. Tarleton’s abbreviated pro forma income statement for next year is shown below.
Revenues $7,500,000
Cost of goods sold 3,750,000
Operating fixed costs 3,125,000
Operating income $ 625,000
The best action for Tarleton to take in order to meet its income goal is to






2

Which of the following steps in the strategic management process should be completed first?






3

A firm’s statement of broad objectives or mission statement should accomplish all of the following except






4

Intensity of rivalry among existing firms in an industry increases when I. Products are relatively undifferentiated II. Consumer switching costs are low






5

Structural considerations affecting the threat of substitutes include all of the following except






6

A corporation is performing research to determine the feasibility of entering the truck rental industry. The decision to enter the market is most likely to be deterred if






7

Which industry factor does not contribute to competitive rivalry?






8

Which condition does not increase the threat of new competitor entry into the industry?






9

The concurrent action of basic competitive forces as defined by Porter’s model determines the






10

Which factor most likely encourages entry into an existing market?






Result

Total Questions:
Correct Answers:
Wrong Answers:
Percentage: