GLO-BUS Decisions & Reports Year 7|GLO-BUS DECISION SUMMARY Year 7, Complete solution guide.
The factors that affect a company's P/Q rating for UAV drones include - (ANSWER)the assembly quality
incentives paid to drone PAT members, the company's prior-year brand reputation, and the prior year
worldwide average warranty claim rate on the company's drones.
Which of the following ARE components of the compensation package for members of production
assembly teams? - (ANSWER)The dollar-cost of a PAT member's fringe benefit package, assembly quality
incentives ($ per unit assembled divided equally among PAT members), year-end bonus for perfect
attendance, and annual base wage
The factors that affect the productivity of both camera PATs and drone PATs include - (ANSWER)the size
of assembly quality incentives paid to camera/drone PATs, how favorably the overall size of the
company's total compensation package (not including overtime pay) per camera/drone PAT member
compares against the camera/drone all-company averages, and changes in the number of camera/drone
models that have to be assembled.
The company's present assembly plant has sufficient space for - (ANSWER)up to 150 workstations,
without expanding the size of the plant.
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 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.
The company's shipments of digital cameras to retailers in various foreign countries are subject to -
(ANSWER)import duties imposed by the countries to which the cameras are shipped and the effects of
fluctuating exchange rates.
The factors that affect a company's P/Q rating include: - (ANSWER)the caliber of core components;
company's cumulative spending for new product R&D, engineering and design; the number of models;
camera body ergonomics/durability; and the number of special utility features.
The company maintains a production facility in - (ANSWER)Taiwan.
The decisions that company co-manages make each year are organized around - (ANSWER)marketing,
product design, assembly/shipping, compensation and labor force, and finance.
The options that a company has for assembling enough cameras to meet peak-quarter order form
retailers include - (ANSWER)hiring "temporary" PATs, the use of overtime, and outsourcing assembly to
contact assemblers.
The factors that affect the productivity of PATs include - (ANSWER)the size of incentive bonuses to
workers, base pay increases, perfect attendance bonuses, the size of the fringe benefits package, how
,favorably the overall size of a company's compensation package compares with the industry-average
compensation package, expenditures for PAT training and productivity improvement, and changes in the
number of models.
The market for digital cameras is projected to grow - (ANSWER)at 8-10% annually during the year 6-year
10 period and at 4-6% during the year 11-year 15 period.
Which of the following is not an accurate description of the market for digital cameras? -
(ANSWER)Retailers get their cameras from camera-makers on a just-in-time delivery basis.
Which of the following are not measures on which a company's performance is judged/scored? -
(ANSWER)P/Q rating, dividend payments, revenues, market share, and total number of cameras sold,
and balance sheet strength.
Which of the following most accurately describes your company's production/assembly operations? -
(ANSWER)Most all camera components are sources from outside suppliers having plants or distribution
centers near the company's assembly facility; the company uses workstations staffed by 4-person teams
to assemble cameras. In the most recent year, the current productivity of the assembly teams was 2,500
cameras per quarter or 10,000 per year. Some cameras are outsourced from contract assemblers that
are paid a $25 fee for each camera assembled.
Which of the following statements accurately describes the distribution of the company's unit sales
across the four geographic regions in which it sells cameras? - (ANSWER)The company sells 40% of its
cameras its biggest region and sells only 10% of its cameras in its smallest region.
Which one of the following is NOT a way to improve the P/Q rating of a company's brand of multi-
featured cameras? - (ANSWER)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? -
(ANSWER)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 -
(ANSWER)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 sub-par ROE? -
(ANSWER)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? - (ANSWER)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. - (ANSWER)Are worth careful scrutiny by the
managers of all companies because when the bench-marking 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 - (ANSWER)$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 above income statement data, the company's operating profit
margin and net profit margin are - (ANSWER)26.8% and 17.7%.
Which of the following sets of actions are unlikely to help a company achieve a differentiation-based
competitive advantage over some/many of its rivals that are marketing entry-level cameras? -
(ANSWER)Actions to raise the base pay of PAT members by 10% or more each year, charging prices for
entry-level cameras that are $5 or more above any other company in that industry in all four geographic
regions, and spending more on new product R&D per entry-level camera that is the highest in the
industry (as reported on p. 5 of each issue of the GLO-BUS Statistical Review.)
The factors that affect a company's P/Q rating for UAV drones include - (ANSWER)the assembly quality
incentives paid to drone PAT members, the company's prior-year brand reputation, and the prior year
worldwide average warranty claim rate on the company's drones.
Which of the following ARE components of the compensation package for members of production
assembly teams? - (ANSWER)The dollar-cost of a PAT member's fringe benefit package, assembly quality
incentives ($ per unit assembled divided equally among PAT members), year-end bonus for perfect
attendance, and annual base wage
The factors that affect the productivity of both camera PATs and drone PATs include - (ANSWER)the size
of assembly quality incentives paid to camera/drone PATs, how favorably the overall size of the
company's total compensation package (not including overtime pay) per camera/drone PAT member
compares against the camera/drone all-company averages, and changes in the number of camera/drone
models that have to be assembled.
The company's present assembly plant has sufficient space for - (ANSWER)up to 150 workstations,
without expanding the size of the plant.
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 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.
The company's shipments of digital cameras to retailers in various foreign countries are subject to -
(ANSWER)import duties imposed by the countries to which the cameras are shipped and the effects of
fluctuating exchange rates.
The factors that affect a company's P/Q rating include: - (ANSWER)the caliber of core components;
company's cumulative spending for new product R&D, engineering and design; the number of models;
camera body ergonomics/durability; and the number of special utility features.
The company maintains a production facility in - (ANSWER)Taiwan.
The decisions that company co-manages make each year are organized around - (ANSWER)marketing,
product design, assembly/shipping, compensation and labor force, and finance.
The options that a company has for assembling enough cameras to meet peak-quarter order form
retailers include - (ANSWER)hiring "temporary" PATs, the use of overtime, and outsourcing assembly to
contact assemblers.
The factors that affect the productivity of PATs include - (ANSWER)the size of incentive bonuses to
workers, base pay increases, perfect attendance bonuses, the size of the fringe benefits package, how
,favorably the overall size of a company's compensation package compares with the industry-average
compensation package, expenditures for PAT training and productivity improvement, and changes in the
number of models.
The market for digital cameras is projected to grow - (ANSWER)at 8-10% annually during the year 6-year
10 period and at 4-6% during the year 11-year 15 period.
Which of the following is not an accurate description of the market for digital cameras? -
(ANSWER)Retailers get their cameras from camera-makers on a just-in-time delivery basis.
Which of the following are not measures on which a company's performance is judged/scored? -
(ANSWER)P/Q rating, dividend payments, revenues, market share, and total number of cameras sold,
and balance sheet strength.
Which of the following most accurately describes your company's production/assembly operations? -
(ANSWER)Most all camera components are sources from outside suppliers having plants or distribution
centers near the company's assembly facility; the company uses workstations staffed by 4-person teams
to assemble cameras. In the most recent year, the current productivity of the assembly teams was 2,500
cameras per quarter or 10,000 per year. Some cameras are outsourced from contract assemblers that
are paid a $25 fee for each camera assembled.
Which of the following statements accurately describes the distribution of the company's unit sales
across the four geographic regions in which it sells cameras? - (ANSWER)The company sells 40% of its
cameras its biggest region and sells only 10% of its cameras in its smallest region.
Which one of the following is NOT a way to improve the P/Q rating of a company's brand of multi-
featured cameras? - (ANSWER)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? -
(ANSWER)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 -
(ANSWER)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 sub-par ROE? -
(ANSWER)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? - (ANSWER)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. - (ANSWER)Are worth careful scrutiny by the
managers of all companies because when the bench-marking 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 - (ANSWER)$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 above income statement data, the company's operating profit
margin and net profit margin are - (ANSWER)26.8% and 17.7%.
Which of the following sets of actions are unlikely to help a company achieve a differentiation-based
competitive advantage over some/many of its rivals that are marketing entry-level cameras? -
(ANSWER)Actions to raise the base pay of PAT members by 10% or more each year, charging prices for
entry-level cameras that are $5 or more above any other company in that industry in all four geographic
regions, and spending more on new product R&D per entry-level camera that is the highest in the
industry (as reported on p. 5 of each issue of the GLO-BUS Statistical Review.)
