5. What are financial ratios used for? (Points : 2) Determine your financial pos

Question

5. What are financial ratios used for? (Points : 2)

Determine your financial position

Show your financial strengths and weaknesses

Show the relationship to a standard

Determine the rate of profit Question

6. 6. Referent is defined as power derived from the admiration and respect of others and often through charisma that these individuals radiate. (Points : 2)

True or False

7. 7. At which stage of the product life cycle do profits peak? (Points : 2)

advancing stage

growth stage

maturity stage

exit stage

9. The process of influencing others to achieve group or organizational goals is the definition of what management term? (Points : 2)      

management
leadership
interpersonal influence

   supervision
   

Explanation / Answer

5. What are financial ratios used for?

Financial ratios are basically used to show your financial strengths and weaknesses. Financial position is not seen by financial ratios. e.g. if you want to see how much assets do you have as on 31/03/2016. This is asking someone their financial position. This can be seen from the balance sheet. Financial ratios would tell you your financial strength and weaknesses. e.g. Current Ratio = Current Assets / Current Liabilities. Current ratio is a financial ratio, it shows that how strong are you in terms of current holding. Suppose you have this ratio as 2:1. What does it mean? It means that you have two times current asset for every 1 unit of current liability hold. So you are strong enough for your current operations.

6.  Referent is defined as power derived from the admiration and respect of others and often through charisma that these individuals radiate.

True, Referent power refers to the ability of a leader to influence the followers. Thus this is something derived from the admiration and respect of others and often through charisma that individuals radiate.

7. At which stage of the product life cycle do profits peak?

Maturity stage is the stage where profits or sales volume is at its peak. Companies try to work hard to maintain their market share, as it is at its peek, and it is very hard to maintain it forever. During advancing and growth stage, profits potential increases with increasing rates, but it is at maximum at the maturity stage after which profits begin to fall.

9. The process of influencing others to achieve group or organizational goals is the definition of what management term?

Leadership : Leadership is all about influencing others to give their best in interest of group or organizational goals.

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