Updated (Actual Exam)
What three options do you have if you have excess cash?
Retire Bonds, Retire Stock, and Issue Dividends to Shareholders
What is an emergency loan?
It is a one-year bailout loan from an emergency lender. It comes with a very high
interest rate
When should you consider borrowing money so you don't have to receive an
emergency loan?
If your projected December 31 cash position is negative or close to zero
Retiring long-term debt
Paying back bonds early prior to their 10-year due dates. This helps reduce interest
payments, but is typically best used in later rounds
Retiring stock
Buying back shares of common stock from the public. This reduces the number of
shares outstanding, but this is best reserved when you have excess cash
, 4/6/26, 1:10 PM Capsim Exam Questions with 100% Correct Answers | Verified | Updated (Actual Exam)
Issuing dividends
Giving money to shareholders per share each year. This slightly helps increase
your stock price when you have excess cash
What customer segment(s) does your company sell your product to?
Low tech and high tech
Two expectations customers have that are part of the Customer Buying Criteria
Positioning and price
Two of the scoring methods you are measured on in the simulation
Sales and contribution margin
What decisions are made in the R&D department?
Performance, size, and reliability
What does promo budget determine?
Customer Awareness, and your Sales Budget determines Customer Accessibility
When a product's positioning (Performance/Size) is updated, what happens to
the product's age?
It cuts in half
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