Seymore was recently invited to become a director of Buckley Industries, Inc. If Seymore accepts and becomes a director, Seymore, along with the other directors, will not be personally liable for
A. Lack of reasonable care.
B. Honest errors of judgment.
C. Declaration of a dividend that the directors know will impair legal capital.
D. Diversion of corporate opportunities to themselves.
Answer: B. Honest errors of judgment.
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Regarding the profit margin ratio, which of the following statements is incorrect?
A) The higher the profit margin ratio, the more sales dollars end up as profit. B) The profit margin ratio is computed by dividing net sales by net income. C) The profit margin ratio shows how much net income a business earns on every $1.00 of sales. D) The profit margin ratio focuses on the profitability of a company and is often reported in the business press.
After determining its communication objectives, the company's next step in developing a promotional plan is to ________
A) identify the target audiences B) determine its marketing communication budget C) design the promotion mix D) decide on a push or pull strategy E) identify its product's phase in the product life cycle