How each of the statements reflects the company? In a series of job interviews, you ask threerecruiters to describe the missions of theircompanies.One says, "To make profits."Another says, "To create customers."The third says,"To fight world hunger."

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Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

How each of the statements reflects the company?

In a series of job interviews, you ask three
recruiters to describe the missions of their
companies.
One says, "To make profits."
Another says, "To create customers."
The third says,"To fight world hunger."

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Follow-up Question

How would you expect this situation to affect the assessment of Eastern’s financial condition and performance?

Although nonquantitative factors may be relevant to a company’s financial evaluation in general terms, the details of this specific situation are not relevant to the firm’s financial condition or performance.

Its one-product strategy increases Eastern’s efficiency and will ensure its long-term financial success. Although its profits are declining now, these efficiencies will ensure the company’s long-term success.

Eastern’s profits will continue to decline, and the company’s survival is in jeopardy if it does not create a new product with more potential for market growth.

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