Value can be created by: a. Production b. Acquiring, turning around and selling off divisions or units c. Commerce Production and/or Commerce 6. Backward-looking profitability ratios based on historic accounting data: a. Are of little value because of the imperfections of accounting data b. Are the only true indicators to firm performance because they are subject to independent audit Are useful indicators of a firm's effectiveness in generating profits from its assets d. Are useful only to the extent that they can provide a basis for forecasting future cash flows 7. How can a firm set its performance goals? a. By setting performance targets that are consistent with long term goals b. By setting performance targets that match variables on which managers exert some control By setting performance targets that are linked to strategy All of the above c. C. 8. a. One can argue that corporate social responsibility must be addressed by a firm because of: Ethical and moral reasons b. Internal political reasons c. Economic reasons d. Answers a and c Chapter 3: Industry Analysis: The Fundamentals 1. Perfect competition exists where two or three dominant firms efficiently supply the market and do not attempt to collude or use unfair business practices. True or False? product or rerurice means that customers will tend to switch to these