Grade 2026\2027
The projected growth in buyer demand for BRANDED athletic footwear is:
A) 3-5% annually in North America and Europe-Africa in Years 16-20 and 7-9% annually in Latin America
and the Asia Pacific regions in Years 16-20.
B) 6-9% annually in all four geographic regions during Years 11-15 and 4-7% annually in all four regions
during Years 16-20.
C) 5-7% annually in North America during the Year 11-15 periods and 4-6% annually in North America
during the Year 16-20 period.
D) 10-12% annually in Europe-Africa and the Asia-Pacific during Years 11-15 and 8-10% annually in these
same two regions during Years 16-20.
E) 6-8% annually in Latin-America and North America during the Year 11-15 period and 5-7% annually in
the same two regions during the Year 16-20 period.
- correct answer A) 3-5% annually in North America and Europe-Africa in Years 16-20 and 7-9% annually
in Latin America and the Asia Pacific regions in Years 16-20.
Which of the following statement about the IMPORTANCE of each competitor factor (most particularly
influential competitive factors like S/Q ratings, models/styles, and selling prices) in determining
company sales volumes and market shares in a particular geographic region is false?
A) Tiny cross-company differences on a highly influential competitive factor (like S/Q ratings, the
number of models/styles offered, and selling prices) nearly always have a bigger impact on company
sales/market shares in a region than do large differences on less influential competitive factors.
B) Big S/Q rating differences in a region always weigh heavily in accounting for company-to-company
differences in branded pairs sold and market share in all four regions.
C) As the spread between the company with the region's highest S/Q rating and the company with the
lowest S/Q rating becomes smaller and smaller, the weaker is the unit sales/m
- correct answer A) Tiny cross-company differences on a highly influential competitive factor (like S/Q
ratings, the number of models/styles offered, and selling prices) nearly always have a bigger impact on
company sales/market shares in a region than do large differences on less influential competitive
factors.
Which one of the following is not one of the factors that affect the S/Q rating of a company's footwear?
, A) A company's current and cumulative spending for TQM/Six Sigma quality control programs
B) The percentage size of a production facility's reject rates for branded and private-label footwear due
to defective workmanship and poorly-maintained equipment.
C) Expenditures for new styling/features per model
D) Whether production improvement option C has been installed (this option entails investing in special
production equipment that boosts the S/Q rating of all pairs produced by 1.0 star)
E) Expenditures for best practices training
- correct answer B) The percentage size of a production facility's reject rates for branded and private-
label footwear due to defective workmanship and poorly-maintained equipment.
Which of the following statements about the impact of a company's competitive efforts in a region on
its regional market share and number of branded pairs sold is false?
A) Companies with more influential celebrity lineups in a region enjoy a competitive advantage in
attracting buyers to purchase their brand in either retail stores or online as compared to regional rivals
with less influential celebrity endorsements (or no celebrity endorsements).
B) A footwear-maker achieves the biggest possible styling/quality-based competitive advantage in a
given when its branded footwear has a higher S/Q rating than any other company in the region.
C) A company's pairs sold and market share outcomes in a region are positively impacted when the
number of models/styles it offers for sale in the region is above the regional average.
D) The more a company's S/Q rating in a region is below the region's all-company average, the bigger
- correct answer B) A footwear-maker achieves the biggest possible styling/quality-based competitive
advantage in a given when its branded footwear has a higher S/Q rating than any other company in the
region.
Which of the following are factors in determining a company's credit rating?
A) Its debt-equity ratio, current ratio, the average interest rate paid on loans outstanding, and prior-year
gross profit margin.
B) Its default-risk ratio, debt-asset ratio, and interest coverage ratio.
C) Its loans outstanding as a percentage of net income, dividend payout ratio, and debt-equity ratio.
D) Its total liabilities as a percentage of total shareholders' equity, prior-year interest payments as a
percentage of net income, and prior-year return on capital investment.
E) A company's current ratio, accounts payable as a percent of net income, and prior-year operating
profit margin.
- correct answer B) Its default-risk ratio, debt-asset ratio, and interest coverage ratio.