Quiz 2 - Answers - Part 2
1.
Which one of the following is NOT a way to improve the P/Q rating of a company's
brand of UAV
drones?
Decreasing the number of models in the company's lineup from 2 to 1
Improving the battery pack to permit more minutes of flying time on a single charge
Offering all buyers of the company's UAV drones a full day of flight training at a nearby
independentlyoperated drone flight training center for a modest extra $50 charge
Increasing the number of rotors
Improving the caliber and functionality of the camera stabilization device (so that video
quality
is not so adversely affected by strong wind conditions)
2. Which one of the following is unlikely to be an attractive and effective way to
reduce the design,
assembly. marketing, and other costs of UAV drones and help achieve a sizable
competitive
advantage over rival companies based on lower overall costs per UAV drone
sold?
Trying out numerous different combinations of design components, performance
enhancements, and extra performance features to be used in the company's UAV
drones in
order to discover the lowest cost combination for achieving a competitively appealing
P/Q
rating
Spending only modest amounts annually for Corporate Social Responsibility and
Citizenship
initiatives
Switching to robotassisted assembly methods to lower labor costs per drone
assembled
Designing, assembling, and selling UAV drones having a P/Q rating of 0.5 stars
Trying to keep the warranty period to 60 days or 90 days (but no more than 120 days), if
it is
competitively feasible to do so
3. Which one of the following actions is MOST likely to REDUCE the productivity
of camera/drone
PATs?
Failing to have a total annual compensation package for camera/drone PAT members
, that is
at least equal to the prioryear industryaverage compensation level
Boosting the annual base wage of camera/drone PAT members by only 2% in any given
year
Not raising the annual bonus for perfect attendance for a period of 3 years
Cutting the number of camera models being assembled from 4 models to 3 models and
the
number of drone models being assembled from 3 models to 2 models
Decreasing the size of the assembly quality incentive for cameras to a maximum of
$0.40 and the assembly quality incentive for drones to a maximum of $1.00
4. 11Which of the following is an action that merits serious consideration in trying
to improve a
company's credit rating? In answering this question, you may wish to consult the
Help section
for page 5 of the Camera & Drone Journal and read the discussion pertaining to
The Credit
Rating Measures."
Avoid all use of overtime in assembling cameras and drones
Do not increase the compensation paid to PAT members (until the desired credit rating
is
achieved)this will help keep production costs for both cameras and drones from rising
Issue additional shares of common stock and use the proceeds to pay off bank loans,
thereby immediately improving the company's debtequity percentages
Cut the prices the company charges for both cameras and drones in all four geographic
regions by at least 10% in order to improve the company's EPS, ROE, and stock price
Increase the size of the company's dividend payments to stockholdersthis helps
reduce the
amount of retained earnings on the company's balance sheet (which in turn helps
increase
the company's interest coverage ratio)
5. As a general rule, it is important for company managers to be aware of the
regions where the
company's UAV drone business was most profitable and least profitable in the
justcompleted
decision round (so they can pursue corrective actions in the underperforming
regions in the
upcoming decision round); the best information, then the best place(s) to look for
this
1.
Which one of the following is NOT a way to improve the P/Q rating of a company's
brand of UAV
drones?
Decreasing the number of models in the company's lineup from 2 to 1
Improving the battery pack to permit more minutes of flying time on a single charge
Offering all buyers of the company's UAV drones a full day of flight training at a nearby
independentlyoperated drone flight training center for a modest extra $50 charge
Increasing the number of rotors
Improving the caliber and functionality of the camera stabilization device (so that video
quality
is not so adversely affected by strong wind conditions)
2. Which one of the following is unlikely to be an attractive and effective way to
reduce the design,
assembly. marketing, and other costs of UAV drones and help achieve a sizable
competitive
advantage over rival companies based on lower overall costs per UAV drone
sold?
Trying out numerous different combinations of design components, performance
enhancements, and extra performance features to be used in the company's UAV
drones in
order to discover the lowest cost combination for achieving a competitively appealing
P/Q
rating
Spending only modest amounts annually for Corporate Social Responsibility and
Citizenship
initiatives
Switching to robotassisted assembly methods to lower labor costs per drone
assembled
Designing, assembling, and selling UAV drones having a P/Q rating of 0.5 stars
Trying to keep the warranty period to 60 days or 90 days (but no more than 120 days), if
it is
competitively feasible to do so
3. Which one of the following actions is MOST likely to REDUCE the productivity
of camera/drone
PATs?
Failing to have a total annual compensation package for camera/drone PAT members
, that is
at least equal to the prioryear industryaverage compensation level
Boosting the annual base wage of camera/drone PAT members by only 2% in any given
year
Not raising the annual bonus for perfect attendance for a period of 3 years
Cutting the number of camera models being assembled from 4 models to 3 models and
the
number of drone models being assembled from 3 models to 2 models
Decreasing the size of the assembly quality incentive for cameras to a maximum of
$0.40 and the assembly quality incentive for drones to a maximum of $1.00
4. 11Which of the following is an action that merits serious consideration in trying
to improve a
company's credit rating? In answering this question, you may wish to consult the
Help section
for page 5 of the Camera & Drone Journal and read the discussion pertaining to
The Credit
Rating Measures."
Avoid all use of overtime in assembling cameras and drones
Do not increase the compensation paid to PAT members (until the desired credit rating
is
achieved)this will help keep production costs for both cameras and drones from rising
Issue additional shares of common stock and use the proceeds to pay off bank loans,
thereby immediately improving the company's debtequity percentages
Cut the prices the company charges for both cameras and drones in all four geographic
regions by at least 10% in order to improve the company's EPS, ROE, and stock price
Increase the size of the company's dividend payments to stockholdersthis helps
reduce the
amount of retained earnings on the company's balance sheet (which in turn helps
increase
the company's interest coverage ratio)
5. As a general rule, it is important for company managers to be aware of the
regions where the
company's UAV drone business was most profitable and least profitable in the
justcompleted
decision round (so they can pursue corrective actions in the underperforming
regions in the
upcoming decision round); the best information, then the best place(s) to look for
this
