40. (Terminology) Match the following lettered items on the left with the appropriate numbered description on the right.
An organization's intangible assets of skill, knowledge, and information A belief about moral and immoral behavior
The long-term plan related to organizational goals and objectives The way in which authority and responsibility are distributed in an organization
The basic assumptions about an organization, its goals, and its practices
6. A strategy based on differentiating products or services from those of competitors
7. The source of information about external competitors and markets
8. The processes of an organization and its suppliers to convert inputs into products and services structure
9. The process of using the Internet to buy and sell goods
41. (Accounting information) You are the owner and manager of a small auto repair shop that does routine maintenance, major repairs, and body work. Business is good, and your monthly financial statements show that your shop is consistently profitable. Cash flow is becoming a small problem, however, and you may need to take out a loan from the bank. You have also been receiving customer complaints about time delays and price increases.
a. What accounting information do you think is most important to take with you to discuss a possible loan with your banker?
b. What accounting information do you think is most important in ascertaining the business activities of your repair shop in regard to addressing time delays and price increases? What about nonaccounting information?
c. Can the various information in parts (a) and (b) be gathered from the accounting records directly? Indirectly? If not at all, where would you need to look for such information?
42. (Globalization) The 1996 annual report of Callaway Golf Company (headquartered in California) was slightly untraditional in that the opening "letter" to shareholders was given not only in English, but also in German, French, Spanish, Japanese, and Chinese.
a. Discuss the costs and benefits of a U.S.-based company taking the time to provide such translations.
b. What additional information would you want to have to assess how such translations are related to Callaway's strategic plans?
43. (E-commerce) A new aspect of e-commerce is home management services. Andersen Consulting predicts that "the market for on-line orders of food, household goods, and services will mushroom from $100 million in 1997 to $57 billion or more by 2007."29
http:// andersenconsulting .com
29 Jane Hodges, "On the Web, It's Slow Food," Fortune (October 26, 1998), p. 262.
http:// www.homedepot .com
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