Simulation Real Quiz | Graded A+ Complete Solution |
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Section 1: GLO-BUS Industry Overview & Key Performance Indicators (KPIs) (Q1-
10)
Q1. In the GLO-BUS simulation, a company's overall score is calculated as a weighted
combination of five performance measures. Which of the following is NOT one of the
five standard metrics used to compute the overall score?
A. Earnings per share (EPS)
B. Return on equity (ROE)
C. Market share in the drone segment only
D. Credit rating
Correct Answer: C. Market share in the drone segment only [CORRECT]
Rationale: The overall score weights EPS, ROE, stock price, credit rating, and image
rating—not segment-specific market share. While market share influences financial
results, it is not a standalone weighted component of the overall score.
Q2. A GLO-BUS company achieves the highest EPS in the industry but ranks fifth in
image rating and fourth in credit rating. Which statement best describes the likely
impact on its overall score?
A. The company will automatically rank first in overall score because EPS is the most
heavily weighted factor
B. The company will likely rank in the top third but may be overtaken by competitors
with more balanced performance across all five metrics
C. The company will rank last because image rating and credit rating are more
,important than EPS
D. The overall score is calculated using only the best-performing metric
Correct Answer: B. The company will likely rank in the top third but may be overtaken
by competitors with more balanced performance across all five metrics [CORRECT]
Rationale: GLO-BUS rewards balanced excellence. A dominant EPS can be offset by
weaker image and credit ratings, allowing well-rounded competitors to score higher.
No single metric guarantees first place, and the overall score is not single-metric
based (D).
Q3. Investor expectations in GLO-BUS are primarily driven by:
A. The company's prior-year performance and the industry average performance
B. Random number generation unrelated to company decisions
C. The instructor's manual grading curve only
D. Competitor advertising expenditures alone
Correct Answer: A. The company's prior-year performance and the industry average
performance [CORRECT]
Rationale: Investor expectations are benchmarked against historical company
performance and peer averages. Meeting or beating these expectations positively
impacts stock price. They are not random (B), instructor-curved (C), or advertising-
dependent alone (D).
Q4. A company's image rating in GLO-BUS is most directly influenced by:
A. Only the company's P/Q rating
B. A combination of its P/Q rating, market share, and whether it offers a
competitively attractive warranty
C. Only the company's advertising budget
D. Only the CEO's decision entry speed
, Correct Answer: B. A combination of its P/Q rating, market share, and whether it
offers a competitively attractive warranty [CORRECT]
Rationale: Image rating reflects product quality, market presence, and customer
service (warranty). It is not driven solely by P/Q (A), advertising (C), or entry timing
(D).
Q5. In GLO-BUS, a company's competitive advantage is best measured by:
A. The size of its production facility
B. Its ability to consistently outperform rivals on key metrics such as EPS, ROE, and
stock price
C. The number of drone models it offers
D. Its cash reserves alone
Correct Answer: B. Its ability to consistently outperform rivals on key metrics such as
EPS, ROE, and stock price [CORRECT]
Rationale: Competitive advantage is reflected in sustained superior financial and
market performance relative to rivals. Facility size (A), model count (C), and cash
reserves (D) are inputs or resources, not measures of competitive advantage.
Q6. A company has net income of $42,000,000 and 30,000,000 shares outstanding.
Its EPS is:
A. $0.70
B. $1.00
C. $1.40
D. $2.10
Correct Answer: C. $1.40 [CORRECT]
Rationale: EPS = Net Income ÷ Shares Outstanding = $42,000,000 ÷ 30,000,000 =
$1.40. Option A reverses the calculation, B ignores the actual ratio, and D incorrectly
multiplies.