Glo-bus Quiz 2 | 2023 | Questions with 100% Correct Answers | Updated & Verified
Which one of the following is NOT a way to improve the P/Q rating of a company's brand of multi-featured cameras
Assume a company's Income Statement for a given quarter is as follows: Sales Revenues (50,000), Product...
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
Ans: Increasing the number of models in the company's line of multi-featured cameras.
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?
Ans: Delivery costs are 2.8% of revenues and represent the company's smallest cost
component.
3). One of the benefits of pursuing a strategy of social responsibility and corporate citizenship
is
Ans: An enhanced image rating, provided company spending for socially responsible
activities is meaningful and is sustained over a multi-year period.
4). Which of the following is not an action company co-managers can take to boost a subpar
roe?
Ans: Issue additional shares of stock and use the proceeds to pay down the debt
outstanding on the company's line of credit.
5). Which one of the following actions is usually a dependable and appealing way for managers
to try to boost their company's eps?
Ans: 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.
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, 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.
Ans: 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.
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
workstations, than its annual depreciation costs will rise by
Ans: $550,000
8). 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
Ans: 26.8% and 17.7%.
9). 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?
Ans: 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.)
10). Which one of the following actions does not result in higher levels of pat labor productivity
in assembling cameras?
Ans: Avoiding contracting the assembly of cameras to outside suppliers/contractors.
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