Consider the four components identified by the author in the sustainable growth equation. Which if nay of these components are heavily influenced by executive management?
What will be an ideal response?
Each of the four components is heavily influenced by management. The profit margin is a function of how well managers control expenses, the asset turnover is a function of which assets the manager has chosen to purchase for the firm and how well those assets generate revenues. Leverage is the third component and managers choose the firm's capital structure, i.e., how to pay for the assets. Finally, the retention ratio is also a management decision.
Company policy about how to control expenses, the types of assets to buy, how to fund those assets, and how to distribute earnings to shareholders are all determined by executive management.
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Which of the following is true of the Fair Value Adjustment account for trading investments?
A) It will always have a credit balance. B) It will always have a debit balance. C) It is considered as an adjunct account if it has a credit balance. D) It is considered as an adjunct account if it has a debit balance.
In planning its market offering, the marketer needs to address five product levels, each of which reduces customer value
Indicate whether the statement is true or false