GLO-BUS QUIZ 2 QUESTIONS
Which one of the following is NOT a way to improve the P/Q rating of a company's
brand of multi-featured cameras - Answers-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? - Answers-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 - Answers-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
subpar ROE? - Answers-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? - Answers-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. -
Answers-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.
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 - Answers-$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