GLO-BUS QUIZ 2 QUESTIONS &
ANSWERS(RATED A+)
Which one of the following is NOT a way to improve the P/Q rating of a company's
brand of multi-featured cameras - ANSWERIncreasing 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? -
ANSWERDelivery 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 - ANSWERAn 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? - ANSWERIssue 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? - ANSWERAchieve 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.
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? - ANSWERActions 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.)
Which one of the following actions does NOT result in higher levels of PAT labor
productivity in assembling cameras? - ANSWERAvoiding contracting the assembly
of cameras to outside suppliers/contractors.
ANSWERS(RATED A+)
Which one of the following is NOT a way to improve the P/Q rating of a company's
brand of multi-featured cameras - ANSWERIncreasing 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? -
ANSWERDelivery 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 - ANSWERAn 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? - ANSWERIssue 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? - ANSWERAchieve 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.
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? - ANSWERActions 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.)
Which one of the following actions does NOT result in higher levels of PAT labor
productivity in assembling cameras? - ANSWERAvoiding contracting the assembly
of cameras to outside suppliers/contractors.
