HRTM 421: Exam 2 (Already Graded A+)

Primary goal of management is to increase ___________. correct answers Shareholder Value If you're not growing you're ______. correct answers Dying What is essential to a company's success? correct answers Growth Shareholder Value = correct answers Market Value Public Company is easy to _________, hard to ______. correct answers Measure; mangage Private Company is only worth: correct answers What you can sell it for The bigger you get the harder it is to grow ____. correct answers 15% _______ multiple the better. correct answers Higher EBITA means: correct answers Earning Before Interest, Dividends, Taxes, & Amortization If stock is going up and down then investors want a _______ ______. correct answers Greater return Beta is a: correct answers Market-related risk measurement Investors are risk _______, they like a steady climb. correct answers Averse ________ companies are easier to control than public because they don't deal with analysts. correct answers Private 5 Benefits of Growth: correct answers 1. Clear career paths for employees 2. Attract qualified employees 3. Increase market share 4. Limit new competition 5. Diversify risk Best way to drive profitability is to: correct answers Increase sales, NOT cut expenses Earnings of additional assets must be greater than the company's ______ of __________. correct answers Cost of Capital If earnings are lower, earnings per share are ______. correct answers Diluted Benefits of Franchising: correct answers - Greater distribution system - Rapid growth without large amounts of capital - Higher profit margins