BSG COMPREHENSIVE
EXAM 120 QUESTIONS WITH
DETAILED VERIFIED ANSWERS
ALREADY GRADED A+
"Which of the following is NOT of much significance to company manager in deciding whether
profitable opportunity exist to build (or purchase) additional plant capacity in the upcoming
decision round? - CORRECT ANSWER=> · Information in the most recent FIR indicates that more
than half of the companies in the industry have expanded their plant capacity since year 10"
"What IS significant to company managers in deciding whether profitable opportunity exist to
build (or purchase) additional plant capacity in the upcoming decision round? - CORRECT
ANSWER=> · The growth in branded demand and private-label demand over the next 3 years (as
reported in each year FIR)
· How branded pairs available for sale in each geographic region in the past year compared with
projected branded demand and private label demand in each geographic region over the next
three years as shown in each year FIR
· The size of beginning inventories of branded footwear in each geographic region reported in
the most recent FIR
· Whether the most recent years FIR shows that the industry already has more than enough
production capacity worldwide to supply the combined demand for branded footwear and
private-label footwear worldwide for each of the next three years"
"If a company's actual results for revenues, net profits, EPS, and ROE turn out to be worse than
projected then it is usually because - CORRECT ANSWER=> · The competitive efforts exerted by
rival companies to capture sales and market share for themselves in one or more geographic
,regions proved stronger than company manager anticipated, given the estimates they entered
for the various industry averages affecting internet sales and branded wholesale sales on the
sales forecast screen"
"Which of the following are affective ways for manager to try to boost a company's stock price?
- CORRECT ANSWER=> · Increase the company's dividend payment to shareholders, each year by
at least $ per share, repurchase shares of common stock, and make every effort to achieve
annual increases in earnings per share."
"Which of the following is an advantage of having plants to manufacture athletic footwear in all
four geographic regions? - CORRECT ANSWER=> · Reduced exposure to adverse exchange rate
cost adjustments (because having plants in all four geographic regions typically enables a
company to reduce cross region shipments of pairs that are subject to unfavorable shifts in
exchange rates)"
"One of the lessons about competing in a globally competitive marketplace that comes from
"playing" the Business strategy game is that - CORRECT ANSWER=> · The dynamic, ever evolving
nature of competition makes it advisable for managers to make strategic adjustments of one
kind or another on an ongoing basis to improve the companies competiveness vis-à-vis rivals
and boost its overall performance"
"One of the benefits of contracting with celebrities to endorse the company's brand of athletic
footwear is - CORRECT ANSWER=> · The assist that celebrity endorsement provides in increasing a
company's sales and market share of branded footwear"
"Which one of the following is NOT a way to reduce costs and strive to achieve a competitive
advantage based on lower overall costs per pair sold than rival companies? - CORRECT
ANSWER=> Avoiding the use of overtime at the company's plants"
"Which one of the following is IS a way to reduce costs and strive to achieve a competitive
advantage based on lower overall costs per pair sold than rival companies? - CORRECT
ANSWER=> · Searching for the lowest cost way to achieve the target S/Q rating
· Spending (but also taking care not to overspend) on best practices training for workers in all of
the companies' plants
· Striving to operate at full production capacity so as to help spread fixed costs over more pairs
of footwear.
, · Investing in one or more plant upgrades that have the effect of lowering manufacturing costs
per pair produced"
"It is reasonable for a company's management team to abandon efforts to win contract to
supply private label footwear to chain retailers in a given year when. - CORRECT ANSWER=> · It
believes the company has good prospect to profitably sell all the branded pairs it can produce at
its existing plants (including full use of overtime)"
"Which of the following is a valid reason or strong signal that a company should consider
changing from a low-cost/low price strategy to a different strategy? - CORRECT ANSWER=> · The
low-price segment for branded footwear becomes so overcrowded with competitors that fierce
competition makes it very difficult to earn attractive profits in the low-price end of the branded
footwear marketplace"
"Which of the following is most likely to be an effective or attractive way to try to reduce
manufacturing costs per pair produced at a particular plant? - CORRECT ANSWER=> Investing in
one or more plant upgrades"
"Which of the following options is usually an appealing way to try to increase a company's ROE?
- CORRECT ANSWER=> · Pursuing actions to boost the company's total profits and maintaining a
high (above 75% payout ratio"
"Which of the following results from the latest decision round are least important in providing
guidance to company managers in making their strategic moves and decision to improve their
company's competiveness and ranking among the top-performing companies in the upcoming
decision round? - CORRECT ANSWER=> · The dividend data, the credit rating data, the income
statement data, and the balance sheet data for each company that are part of the Financial
Performance Summary on p. 5 of the FIR"
"Managers are well-advised to consider whether the company can operate more profitably by
selling some/all plant capacity in one or more geographic regions where - CORRECT ANSWER=> ·
Global demand for branded and private-label footwear is so fare below global plant capacity
that it will be impossible for most all companies to profitably operate their plants at full capacity
for many years to come."
EXAM 120 QUESTIONS WITH
DETAILED VERIFIED ANSWERS
ALREADY GRADED A+
"Which of the following is NOT of much significance to company manager in deciding whether
profitable opportunity exist to build (or purchase) additional plant capacity in the upcoming
decision round? - CORRECT ANSWER=> · Information in the most recent FIR indicates that more
than half of the companies in the industry have expanded their plant capacity since year 10"
"What IS significant to company managers in deciding whether profitable opportunity exist to
build (or purchase) additional plant capacity in the upcoming decision round? - CORRECT
ANSWER=> · The growth in branded demand and private-label demand over the next 3 years (as
reported in each year FIR)
· How branded pairs available for sale in each geographic region in the past year compared with
projected branded demand and private label demand in each geographic region over the next
three years as shown in each year FIR
· The size of beginning inventories of branded footwear in each geographic region reported in
the most recent FIR
· Whether the most recent years FIR shows that the industry already has more than enough
production capacity worldwide to supply the combined demand for branded footwear and
private-label footwear worldwide for each of the next three years"
"If a company's actual results for revenues, net profits, EPS, and ROE turn out to be worse than
projected then it is usually because - CORRECT ANSWER=> · The competitive efforts exerted by
rival companies to capture sales and market share for themselves in one or more geographic
,regions proved stronger than company manager anticipated, given the estimates they entered
for the various industry averages affecting internet sales and branded wholesale sales on the
sales forecast screen"
"Which of the following are affective ways for manager to try to boost a company's stock price?
- CORRECT ANSWER=> · Increase the company's dividend payment to shareholders, each year by
at least $ per share, repurchase shares of common stock, and make every effort to achieve
annual increases in earnings per share."
"Which of the following is an advantage of having plants to manufacture athletic footwear in all
four geographic regions? - CORRECT ANSWER=> · Reduced exposure to adverse exchange rate
cost adjustments (because having plants in all four geographic regions typically enables a
company to reduce cross region shipments of pairs that are subject to unfavorable shifts in
exchange rates)"
"One of the lessons about competing in a globally competitive marketplace that comes from
"playing" the Business strategy game is that - CORRECT ANSWER=> · The dynamic, ever evolving
nature of competition makes it advisable for managers to make strategic adjustments of one
kind or another on an ongoing basis to improve the companies competiveness vis-à-vis rivals
and boost its overall performance"
"One of the benefits of contracting with celebrities to endorse the company's brand of athletic
footwear is - CORRECT ANSWER=> · The assist that celebrity endorsement provides in increasing a
company's sales and market share of branded footwear"
"Which one of the following is NOT a way to reduce costs and strive to achieve a competitive
advantage based on lower overall costs per pair sold than rival companies? - CORRECT
ANSWER=> Avoiding the use of overtime at the company's plants"
"Which one of the following is IS a way to reduce costs and strive to achieve a competitive
advantage based on lower overall costs per pair sold than rival companies? - CORRECT
ANSWER=> · Searching for the lowest cost way to achieve the target S/Q rating
· Spending (but also taking care not to overspend) on best practices training for workers in all of
the companies' plants
· Striving to operate at full production capacity so as to help spread fixed costs over more pairs
of footwear.
, · Investing in one or more plant upgrades that have the effect of lowering manufacturing costs
per pair produced"
"It is reasonable for a company's management team to abandon efforts to win contract to
supply private label footwear to chain retailers in a given year when. - CORRECT ANSWER=> · It
believes the company has good prospect to profitably sell all the branded pairs it can produce at
its existing plants (including full use of overtime)"
"Which of the following is a valid reason or strong signal that a company should consider
changing from a low-cost/low price strategy to a different strategy? - CORRECT ANSWER=> · The
low-price segment for branded footwear becomes so overcrowded with competitors that fierce
competition makes it very difficult to earn attractive profits in the low-price end of the branded
footwear marketplace"
"Which of the following is most likely to be an effective or attractive way to try to reduce
manufacturing costs per pair produced at a particular plant? - CORRECT ANSWER=> Investing in
one or more plant upgrades"
"Which of the following options is usually an appealing way to try to increase a company's ROE?
- CORRECT ANSWER=> · Pursuing actions to boost the company's total profits and maintaining a
high (above 75% payout ratio"
"Which of the following results from the latest decision round are least important in providing
guidance to company managers in making their strategic moves and decision to improve their
company's competiveness and ranking among the top-performing companies in the upcoming
decision round? - CORRECT ANSWER=> · The dividend data, the credit rating data, the income
statement data, and the balance sheet data for each company that are part of the Financial
Performance Summary on p. 5 of the FIR"
"Managers are well-advised to consider whether the company can operate more profitably by
selling some/all plant capacity in one or more geographic regions where - CORRECT ANSWER=> ·
Global demand for branded and private-label footwear is so fare below global plant capacity
that it will be impossible for most all companies to profitably operate their plants at full capacity
for many years to come."
