GLO-BUS Exam 2 Questions and
answers –All correct.
Which one of the following is NOT a way to improve the P/Q rating of a company's
brand of multi-featured cameras - -Increasing the number of models in the company's
line of multi-featured cameras.
-Assume a company's Income Statement for a given quarter is as follows: Sales
Revenues (50,000), Production Costs (26,500), Delivery Costs (1,600), Marketing Costs
(8,500), Administrative Expenses (2,000), Operating Profit (14,400), Net Interest
(750), Income Before Taxes (13,650), Taxes (4,095), Net Income (9,555). Based on the
above data, which of the following statements is false? - -Delivery costs are 2.8% of
revenues and represent the company's smallest cost component.
-One of the benefits of pursuing a strategy of social responsibility and corporate
citizenship is - -An enhanced image rating, provided company spending for socially
responsible activities is meaningful and is sustained over a multi-year period.
-Which of the following is NOT an action company co-managers can take to boost a
subpar ROE? - -Issue additional shares of stock and use the proceeds to pay down the
debt outstanding on the company's line of credit.
-Which one of the following actions is usually a dependable and appealing way for
managers to try to boost their company's EPS? - -Achieve a differentiation-based
competitive advantage over rivals in both the entry-level and multi-featured camera
segments that company managers are savvy enough to sustain; as the market demand
for digital cameras grows worldwide and the company exploits its competitive advantage
to win additional sales, the profit margins from a growing sales volume of entry-level
and multi-featured digital cameras typically results in increase in EPS.
-The industry-low, industry-average, and industry-high benchmarks for camera costs
and operating profits on pp. 5-6 of each issue of the GLO-BUS Statistical Review. - -Are
worth careful scrutiny by the managers of all companies because when the
benchmarking data signals that a company's costs/operating profits for one or more of
the benchmarks are clearly out-of-line (or unappealing), managers are well advised to
take corrective action in the next decision round.
-According to the depreciation rates used by the company and described in the
Production Cost Report, if a company adds 50 new workstations at a cost of $75,000
each and also spends $10 million for an addition to its assembly plant to accommodate
the new workstations, than its annual depreciation costs will rise by - -$550,000
-Assume a company's Income Statement for a given period has the following entries:
Sales Revenues (50,000), Production Costs (26,500), Delivery Costs (1,600), Marketing
Costs (8,500), Administrative Expenses (3,000), Operating Profit (13,400), Net Interest
(750), Income Before Taxes (12,650), Taxes (3,795), Net Income (8,855). Based on the
answers –All correct.
Which one of the following is NOT a way to improve the P/Q rating of a company's
brand of multi-featured cameras - -Increasing the number of models in the company's
line of multi-featured cameras.
-Assume a company's Income Statement for a given quarter is as follows: Sales
Revenues (50,000), Production Costs (26,500), Delivery Costs (1,600), Marketing Costs
(8,500), Administrative Expenses (2,000), Operating Profit (14,400), Net Interest
(750), Income Before Taxes (13,650), Taxes (4,095), Net Income (9,555). Based on the
above data, which of the following statements is false? - -Delivery costs are 2.8% of
revenues and represent the company's smallest cost component.
-One of the benefits of pursuing a strategy of social responsibility and corporate
citizenship is - -An enhanced image rating, provided company spending for socially
responsible activities is meaningful and is sustained over a multi-year period.
-Which of the following is NOT an action company co-managers can take to boost a
subpar ROE? - -Issue additional shares of stock and use the proceeds to pay down the
debt outstanding on the company's line of credit.
-Which one of the following actions is usually a dependable and appealing way for
managers to try to boost their company's EPS? - -Achieve a differentiation-based
competitive advantage over rivals in both the entry-level and multi-featured camera
segments that company managers are savvy enough to sustain; as the market demand
for digital cameras grows worldwide and the company exploits its competitive advantage
to win additional sales, the profit margins from a growing sales volume of entry-level
and multi-featured digital cameras typically results in increase in EPS.
-The industry-low, industry-average, and industry-high benchmarks for camera costs
and operating profits on pp. 5-6 of each issue of the GLO-BUS Statistical Review. - -Are
worth careful scrutiny by the managers of all companies because when the
benchmarking data signals that a company's costs/operating profits for one or more of
the benchmarks are clearly out-of-line (or unappealing), managers are well advised to
take corrective action in the next decision round.
-According to the depreciation rates used by the company and described in the
Production Cost Report, if a company adds 50 new workstations at a cost of $75,000
each and also spends $10 million for an addition to its assembly plant to accommodate
the new workstations, than its annual depreciation costs will rise by - -$550,000
-Assume a company's Income Statement for a given period has the following entries:
Sales Revenues (50,000), Production Costs (26,500), Delivery Costs (1,600), Marketing
Costs (8,500), Administrative Expenses (3,000), Operating Profit (13,400), Net Interest
(750), Income Before Taxes (12,650), Taxes (3,795), Net Income (8,855). Based on the
