Questions and Answers 100% Correct
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‣ A camera-maker's price competitiveness in a particular geographic region is
determined by . Answer: Whether its price is above or below the average price of
all companies competing in that geographic region.
‣ The interest rate a company pays on loans outstanding depends on . Answer: Its
credit rating.
‣ Which the following are not factors in determining a company's credit rating? .
Answer: The size of the company's year-end cash balance, the average of its ROE
for the past three years, and how many times the company has been put on credit
watch.
‣ Consumer purchases of digital cameras are seasonal with . Answer: About 20%
of consumer demand coming in quarter 1, 20% in quarter 2, 20% in quarter 3 and
40% in quarter 4.
‣ Which of the following are the four geographic regions in which the company is
selling its cameras? . Answer: Europe-Africa, Latin America, Asia-Pacific, and
North America.
‣ Which of the following are components of the compensation package for
members of production assembly teams? . Answer: Annual base pay, incentive
bonuses, perfect attendance bonuses, and fringe benefits.
‣ Which of the following currencies are involved in affecting the revenues your
company receives on camera shipments to retailers in the four geographic regions
of the world where it markets cameras? . Answer: U.S. dollars, Taiwan dollars,
Singapore dollars, euros, and Brazilian real.
‣ Which of the following do not have a bearing in determining a company's unit
sales and market share of entry-level or multi-featured cameras in a particular
geographic region? . Answer: The size of the incentive bonus paid to PATs, the
percentage of cameras that were outsourced, and warranty claims costs.