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a от JOD s, you ask 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."

a от JOD s, you ask 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."

Management, Loose-Leaf Version
Management, Loose-Leaf Version
13th Edition
ISBN:9781305969308
Author:Richard L. Daft
Publisher:Richard L. Daft
Chapter5: Managing Ethics And Social Responsibility
Section: Chapter Questions
Problem 8EE
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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."
Transcribed Image Text: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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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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