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Which of the following organizations is most likely to use project financing? a) a small start-up b) a financial services firm with an extensive client list c) a large consumer goods company d)a large public utility involved in infrastructure development - - - correct answer โ
d) a large public utility involved in infrastructure development After an extensive recruitment process to select well-qualified individuals, a large percent of a company's new hires resigned within the first month of the job. Which of the following is the most likely explanation for this situation. a) the training process to prepare the new hires for their assigned tasks was inadequate b) the health benefits provided by the company were not competitive with those of the rest of the industry c) the starting salary for the new hires was not competitive with that of the rest of the industry d) the new hires lacked the basic skills required to learn the job - - - correct answer โ
a) the training process to prepare the new hires for their assigned tasks with inadequate
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Prosco Ltd. employs a process cost system. Inspection of units occurs at the 50 percent mark. Defective units are then removed from the process, and their cost ($4.50) is absorbed by the good units. Prosco has recently been approached by a firm wishing to buy the defective units for a special use. The firm would require Prosco to modify the defective units at a unit cost of $2.00. If Prosco sells the defective units to the firm for $5.00 each, how would Prosco's reported income be affected? (A) It would decrease by $4.50 per unit sold. (B) It would decrease by $1.50 per unit sold. (C) It would increase by $3.00 per unit sold. (D) It would increase by $5.00 per unit sold. - - - correct answer โ
c) it would increase by $3.00 per unit sold Some companies have little, if any, net income or earnings, yet they seem to have all the money they need for capital expenditures. Which of the following best explains how such companies operate? (A) They have good cash flows. (B) They lease capital equipment that does not show up on balance sheets. (C) They have accounts with many different banks.
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answer to which of the following questions is most important to know before starting your plan? (A) What are the company's core competencies? (B) What is the potential market size? (C) What is the impact on the estimated revenue? (D) Does the company have e-commerce capabilities? - - - correct answer โ
A) what are the company's core competencies? If you were the holder of a call option (having cost you $2) on some stock with an exercise price of $20, it would be best for you to exercise your option when the market price is at (A) $. (B) $ .(C) $ (D) $24 - - - correct answer โ
(D) $ Increased globalization and technological change, particularly in telecommunications, enable more organizations to adopt which of the following organizational structures? (A) Functional
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(B) Matrix (C) Network (D) Mechanistic - - - correct answer โ
(C) Network A new local Super Store publicly announced that when more than three people are standing in line at cash registers, additional checkout-lines will be opened. After the announcement, customers quickly noticed that the additional lines were not opened until six or seven people were standing in line. This indicates a gap between (A) customer expectation and management perception of customer expectation (B) management perception of customer expectation and service quality specifications (C) customer expectation and internal management communication (D) actual service delivery and how service quality was communicated - - - correct answer โ
(D) actual service delivery and how service quality was communicated All of the following can be considered in the evaluation of a business unit EXCEPT
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Expected return 15% 15% 17% 17% Standard deviation of return 25% 30% 25% 30% Which security makes the most prudent investment? (A) W (B) X (C) Y (D) Z - - - correct answer โ
(C) Y The Mart, a large retail chain, is considering whether or not to close down a division. The division's projected income statement for the next year follows. Sales $20,000, Cost of goods sold 17,000,000 Gross profit 3,000, Operating costs: Building rents $2,500, Store clerk salaries 3,000,000 Store utilities 1,200, Allocated home office cost 700, .Total operating costs 7,400,000 Anticipated loss ($4,400,000)
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The building rents arise from long-term leases that cannot be cancelled. If The Mart closed down this division, what would be the increase in company profits? (A) $700, (B) $1,200, (C) $3,000, (D) $4,400,000 - - - correct answer โ
(B) $1,200, Using manufacturing-based criteria to measure product quality, which of the following should you monitor on a regular basis? (A) Customers' subjective perceptions of the reliability of the product when in use (B) The conformance of the finished product to agreed-to product specifications (C) Objective, third-party tests of the performance of the product (D) Warranty repair histories of the finished product - - - correct answer โ
(B) The conformance of the finished product to agreed-to product specifications The common stock of ABC, Inc. has a current market price of $ per share. Dividends have been $5 a share for several years and are
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Littleton, Inc., has fixed costs of $75,000 per month, variable costs of $5 per unit, and a sales price per unit of $30. What is the break- even quantity per month? (A) 2, (B) 2, (C) 3, (D) 15,000 - - - correct answer โ
C) 3, Which of the following should be reported net of tax on a corporation's income statement? (A) Discontinued operations (B) Operating income (C) Gross profit (D) Gain on sale of delivery truck - - - correct answer โ
A) discontinued operations If a multinational company cannot change the level of political risk in foreign markets, which of the following tactics would most likely offset possible losses? (A) Maintain control of distribution
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(B) Use currency futures contracts (C) Finance debt locally (D) Maintain control of key inputs - - - correct answer โ
C) finance debt locally Blessed Bundles is a regional clicks-and-mortar retail chain that sells maternity and baby products. It uses data from past purchases to study customers' product preferences, and it uses server tracking logs to study customers' online shopping behavior. Which of the following correctly describes the two types of market research data the company is using? Past Purchases Server Tracking Logs (A) Transactional Clickstream (B) Clickstream Transactional (C) Private Public (D) Public Private - - - correct answer โ
A) Transactional, clickstream Fjord Furniture has been manufacturing furniture in the United States for two decades. Based in Ohio, Fjord produces standard, noncustomized furniture for median price-range consumers. The furniture is produced through manual labor, and Fjord's primary advantage is the low cost of materials that are available close to the
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plagued by corporate consolidations and changes in manufacturing processes. Strong labor unions dominate the region, even though labor un - - - correct answer โ
B) private Fjord Furniture has been manufacturing furniture in the United States for two decades. Based in Ohio, Fjord produces standard, noncustomized furniture for median price-range consumers. The furniture is produced through manual labor, and Fjord's primary advantage is the low cost of materials that are available close to the production facilities. The recent introduction of high-technology equipment such as laser-robotic lathes offers Fjord the opportunity for Fjord to reduce its reliance on manual labor and increase the use of automated systems. Adopting this technology will also allow the production facilities to operate around-the-clock. Profit margins are likely to decline after five years as competitors adopt the new technology. Fjord is located in a region whose economy has been plagued by corporate consolidations and changes in manufacturing processes. Strong labor unions dominate the region, even though labor un - - - correct answer โ
A) specialty store Fjord Furniture has been manufacturing furniture in the United States for two decades. Based in Ohio, Fjord produces standard,
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noncustomized furniture for median price-range consumers. The furniture is produced through manual labor, and Fjord's primary advantage is the low cost of materials that are available close to the production facilities. The recent introduction of high-technology equipment such as laser-robotic lathes offers Fjord the opportunity for Fjord to reduce its reliance on manual labor and increase the use of automated systems. Adopting this technology will also allow the production facilities to operate around-the-clock. Profit margins are likely to decline after five years as competitors adopt the new technology. Fjord is located in a region whose economy has been plagued by corporate consolidations and changes in manufacturing processes. Strong labor unions dominate the region, even though labor un - - - correct answer โ
A) the gross margin on the reduced amount of routine production is less than the gross margin on the state order Fjord Furniture has been manufacturing furniture in the United States for two decades. Based in Ohio, Fjord produces standard, noncustomized furniture for median price-range consumers. The furniture is produced through manual labor, and Fjord's primary advantage is the low cost of materials that are available close to the production facilities. The recent introduction of high-technology equipment such as laser-robotic lathes offers Fjord the opportunity for Fjord to reduce its reliance on manual labor and increase the use of automated systems. Adopting this technology will also allow
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Fjord Furniture has been manufacturing furniture in the United States for two decades. Based in Ohio, Fjord produces standard, noncustomized furniture for median price-range consumers. The furniture is produced through manual labor, and Fjord's primary advantage is the low cost of materials that are available close to the production facilities. The recent introduction of high-technology equipment such as laser-robotic lathes offers Fjord the opportunity for Fjord to reduce its reliance on manual labor and increase the use of automated systems. Adopting this technology will also allow the production facilities to operate around-the-clock. Profit margins are likely to decline after five years as competitors adopt the new technology. Fjord is located in a region whose economy has been plagued by corporate consolidations and changes in manufacturing processes. Strong labor unions dominate the region, even though labor un - - - correct answer โ
A) may be better off if the company were to reduce its cash dividend, which would save stockholders some personal incomes taxes Assume that the average cost of airfare is $400 per chaperone and incidentals are $150 per day per chaperone. All vacation packages are for 6 days. If a ratio of one chaperone per 15 travelers is kept, what is the minimum amount that must be included in the vacation
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package price charged to each customer to cover the cost of a chaperone? (A) $ (B) $ (C) $ (D) $150 - - - correct answer โ
B) $ Bertha has decided to use demographic segmentation to divide her market before she gives any additional consideration to redesigning her product offerings or communications strategies. Which would be the most useful demographic segmentation variable? (A) Religion (B) Education (C) Age (D) Socioeconomic status - - - correct answer โ
C) age Bertha has concluded that to achieve company growth she must construct a strategic business plan. The first step of that process is to (A) conduct a situation analysis
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Bertha's agency regularly employs four people: two travel agents, one travel specialist, and Bertha, who functions as a business manager. Given the configuration of the office, which information network would be most effective? (A) Wheel network (B) Chain network (C) Circle network (D) All-channel network - - - correct answer โ
D) all-channel network Given the potential for negative publicity in serving the student market, which of the following would NOT be an appropriate marketing communication tool for Bertha to use to minimize this potential? (A) A press release stating the extent of the services provided by Sunny Fun Destinations (B) A reorganization of Sunny Fun Destinations' staff in which specific employees are charged with overseeing the student tour market (C) A press conference to let the public know about the new student tours
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(D) Detailed information on the student tour in advertisements - - - correct answer โ
B) a reorganization of Sunny Fun Destinations' staff in which specific employees are charged with overseeing the student tour market Americas Europe Asia Sales $100,000 $70,000 $90,000 Variable costs 60,000 42, 54, Contribution margin $40,000 $28,000 $36, Direct fixed costs 5,000 4,000 3, Direct profit $35,000 $24,000 $33, Allocated home office cost 10,000 7,000 9, Segment profit $25,000 $17,000 $24, Note that the direct fixed costs refer to entry costs particular to each market, and these could be eliminated if ZAPPY exits a market. In addition, the home-office costs have been allocated to the market segments on the basis of division revenue. Next year, ZAPPY expects sales to be flat in the Americas and in Europe but expects 20 percent growth in Asia The average collection period for all sales is 30 days. If all markets realize 40 percent of their total sales during November and
