Glo-Bus Quiz 2 – Actual Exam
Questions and Guide Answers
100% Verified Graded A+
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
Answer: 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
Answer: 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?
Answer: 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 corpo- rate
citizenship is
Answer: 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?
Answer: 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?
Answer: Achieve a ditterentiation-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.
6. The industry-low, industry-average, and industry-high benchmarks for cam-
era costs and operating profits on pp. 5-6 of each issue of the GLO-BUS Sta-
tistical Review.
Answer: 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
Questions and Guide Answers
100% Verified Graded A+
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
Answer: 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
Answer: 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?
Answer: 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 corpo- rate
citizenship is
Answer: 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?
Answer: 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?
Answer: Achieve a ditterentiation-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.
6. The industry-low, industry-average, and industry-high benchmarks for cam-
era costs and operating profits on pp. 5-6 of each issue of the GLO-BUS Sta-
tistical Review.
Answer: 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
