Glo-Bus Quiz 2 (New 2025/2026 Update) Questions with Verified Answers |
100% Correct.
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.
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 revenues and represent the company's smallest cost
component.
One of the benefits of pursuing a strategy of social responsibility and corporate
citizenship is
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?
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?
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.
1|Page
, 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
$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 above income statement data, the company's
operating profit margin and net profit margin are
26.8% and 17.7%.
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?
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.)
Which one of the following actions does NOT result in higher levels of PAT labor
productivity in assembling cameras?
Avoiding contracting the assembly of cameras to outside suppliers/contractors.
Which of the following actions does not help make a company's brand of multi-
featured cameras more competitive and attractive to buyers vis-a-vis the brands of
rival firms?
Increasing total compensation of PAT members to boost their productivity in
assembling multi-featured cameras.
2|Page
100% Correct.
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.
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 revenues and represent the company's smallest cost
component.
One of the benefits of pursuing a strategy of social responsibility and corporate
citizenship is
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?
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?
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.
1|Page
, 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
$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 above income statement data, the company's
operating profit margin and net profit margin are
26.8% and 17.7%.
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?
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.)
Which one of the following actions does NOT result in higher levels of PAT labor
productivity in assembling cameras?
Avoiding contracting the assembly of cameras to outside suppliers/contractors.
Which of the following actions does not help make a company's brand of multi-
featured cameras more competitive and attractive to buyers vis-a-vis the brands of
rival firms?
Increasing total compensation of PAT members to boost their productivity in
assembling multi-featured cameras.
2|Page
