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FIN 375 Week 4 DQs
DQ 1
1. What are the most important financial components to track to
determine the success of a small business? Explain why.
2. Provide an example of a company with a high volume of sales and a
low profit margin, and provide an example of a company with a lower
volume of sales, with a higher profit margin? Which company is more
financially successful and why?
DQ 2
1. What are some of the differences in problem-solving techniques as
they relate to increasing sales and controlling costs?
2. How does a small business keep a balance of increasing sales while
controlling costs?
3. Suppose you manage a small business and notice that sales are high,
but costs are higher. What areas would you look at changing to create a
more profitable business?
DQ 3
1. What data might be used to distinguish short-term success or failure
versus long-term trends when measuring financial performance in a
small business?
2. Why is it important to look for long-term trends, even if things are
looking great for the short term? Provide an example of a situation
where the short-term success of a business is doing well, whereas the
long-term trends are pointing towards future decline.
3. What would you do to change the long-term trends into something
more positive for that company?
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