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EXAM (ELABORATIONS) GLOBUS
QUIZ 2 QUIZ BANK ANSWERS
LATEST COMPLETE SOLU TION
NEW GLO-BUS QUIZ 2
Question 1: 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?
CORRECT ANSWER: Increasing the number of
models in the company's line of multi-featured cameras.
Question 2: 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
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revenues and represent the company's smallest cost component?
CORRECT ANSWER: Delivery costs are 2.8% of
revenues and represent the company's smallest cost component.
Question 3: One of the benefits of pursuing a strategy of
social responsibility and corporate citizenship is?
CORRECT ANSWER: An enhanced image rating,
provided company spending for socially responsible activities is meaningful and is sustained over a multi-year period.
Question 4: 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?
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CORRECT ANSWER: Issue additional shares of stock
and use the proceeds to pay down the debt outstanding on the company's line of credit.
Question 5: 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?
CORRECT 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
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additional sales, the profit margins from a growing sales volume of entry-level and multi-featured digital cameras typically results in increase in EPS.
Question 6: 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?
CORRECT ANSWER: 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.
Question 7: 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