GLO-BUS PARTICIPANT'S GUIDE EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+

1 GLO-BUS PARTICIPANT'S GUIDE EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+ Which of the following does NOT accurately describe your company's camera/drone business and operations? The company has two buildings for assembling products at its Taiwan site - one for cameras and one for drones (the drone assembly process also includes assembly of an action camera model having features and specifications suitable for use in cameraequipped drones). No camera models or drone models are assembled in advance, warehoused in company facilities and then used to fill incoming orders. Your company maintains regional facilities in Milan, Italy; Singapore; Sao Paulo, Brazil; and Dallas, Texas to handle the company's marketing efforts in each of the world's principal geographic regions, to support the merchandising efforts of area retailers who stock the company's brand of action-capture cameras and UAV drones, and to process camera/drone warranty claims including making needed repairs) originating in their Correct Answer: The company makes the majority of the needed camera components at facilities close to its Taiwan assembly plant; newly-produced camera components are transferred by truck on a just-in-time basis to the company's camera assembly facilities where the company operates a 250-person assembly line capable of turning out 3,250 cameras per hour. There is ample space at the camera assembly 2 facility to add two more 250-person assembly lines should they be needed later to fill incoming buyer orders. Worldwide unit sales of wearable, miniature action-capture cameras are reliably projected to grow: A. 6-8% annually for Years 6-10 and then to grow at a slower 4-6% annual rate during the Years 11-15. B. At rates that can range from as little as 5% annually to as high as 15% annually C. About 10% annually through Year 15 D. To grow 8-10% annually during Years 6-10 and then to grow at a slower 6-8% annual rate during the following five years (Years 11-15) 10% annually for Years 6-10, and then slow gradually to 5% annually during Years 11- 15. Correct Answer: A. 6-8% annually for Years 6-10 and then to grow at a slower 4-6% annual rate during the Years 11-15. Which of the following is NOT one of the benefits of current-year and cumulative expenditures for camera/drone product R&D? A. Reducing total annual compensation costs for PATs because such spending, once it reaches $25 million annually and a cumulative total of $100 million, allows the size of PATs to be reduced from 4 persons to 2 persons 3 B. Increasing the productivity of PATs in assembling camera/drone models (because of easier to assemble product designs); the size of this benefit occurs immediately and varies according to the current and cumulative amounts spent C. Boosting a company's P/Q ratings (the size of this benefit varies with the current and cumulative amounts spent and shows up in the P/Q ratings at the beginning of the following year) D. Reducing warranty claims and costs (these two benefits show at the beginning of the following year) Providing a pipeline of tested ways to add more features, improve Correct Answer: A. Reducing total annual compensation costs for PATs because such spending, once it reaches $25 million annually and a cumulative total of $100 million, allows the size of PATs to be reduced from 4 persons to 2 persons Which one of the following is NOT a factor in determining a company's action camera sales and market share in a particular geographic region? How a company's average wholesale price for the camera models it sells to retailers in the region compares with the average wholesale prices of the camera models of competing companies The number of camera models in each company's line-up of camera offerings, the length of the warranty period for each company's camera models, and the amount companies spend for advertising The amounts by which the company's credit rating and customer service rating are above/below the regional average 4 Whether the size of the discounts off the regular average wholesale price a company offers to retailers during weekly sales promotion campaigns is above/below the regional average The extent to which the number of week-long camera sales promotions a company has annually is above/below the region' Correct Answer: The amounts by which the company's credit rating and customer service rating are above/below the regional average Which of the following statements does NOT accurately describe how your company's performance is scored on the Best-In-Industry Standard? In order to receive a score of 100, a company must 1) be the best-in-industry performer on EPS, ROE, stock price, and image rating, 2) achieve the investor-expected targets for EPS, ROE, stock price appreciation, and image rating set by the company's Board of Directors, and 3) have an A+ credit rating. Your company will receive an annual best-in-industry score and a best-in-industry score for all years completed If ROE is given a weight of 20 pts by the instructor, a company with an industry-leading ROE performance of 30% that happens to be 5 percentage pts above the investorexpected ROE of 25% earns a score of 20 pts plus a 5pt bonus for achieving an ROE that is 5 percentage pts above the investor-expected ROE. The best-in-industry performer on EPS, on ROE, on Image Rating, and Correct Answer: If ROE is given a weight of 20 pts by the instructor, a company with an industry-leading ROE performance of 30% that happens to be 5 percentage pts 5 above the investor-expected ROE of 25% earns a score of 20 pts plus a 5pt bonus for achieving an ROE that is 5 percentage pts above the investor-expected ROE. The company has its camera and drone assembly facilities in: Shanghai, China Singapore Dallas, Texas Bangkok, Thailand Taiwan Correct Answer: Taiwan Which of the following are components of the compensation package for members of the camera/drone PATs? Annual base wage, assembly quality incentives ($ per unit assembled divided equally among PAT members), year-end bonus for perfect attendance, and the dollar-cost of a PAT member's fringe benefit package. Monthly salary, the cost of a PAT's fringe benefits package, year-end awards of 10 shares of common stock for perfect attendance, weekly bonuses for meeting or beating the PAT's weekly assembly quota, and a monthly allowance for living expenses The daily wage paid to each PAT member, the costs of company-paid fringe benefits, a bonus of $4.00 per camera/drone assembled by each camera/drone PAT (which is subject to change), and a weekly allowance for living costs 6 The hourly wage paid each PAT member (which can differ for camera PATs and drone PATs), the costs of a PAT member's fringe benefit package, overtime pay, Correct Answer: Annual base wage, assembly quality incentives ($ per unit assembled divided equally among PAT members), year-end bonus for perfect attendance, and the dollar-cost of a PAT member's fringe benefit package. Which the following are NOT accurate as concerns the online retailers of unmanned aerial view drones and/or the buyers of unmanned aerial view drones? The vast majority of drone shoppers consider the widely-available and much-publicized annual P/Q ratings compiled by the Global Alliance for Safe and Responsible Use of Commercial Drones to be a trusted measure of the performance and quality of competing brands of drones. The purchasers of drones in North America are less sensitive to cross-brand differences in P/Q rating than are drone purchasers in Later America; rather, the biggest factor affecting the purchase decisions of North American drone buyers are the retail prices being charged for the various brands of UAV drones. Market research confirms that the prior-year overall images/brand reputations of rival drone-markers have a moderately strong influence on the brand choices of drone buyers in the upcoming twelve Correct Answer: The purchasers of drones in North America are less sensitive to cross-brand differences in P/Q rating than are drone purchasers in Later America; rather, the biggest factor affecting the purchase decisions of North American drone buyers are the retail prices being charged for the various brands of UAV drones. 7 Which of the following are the four geographic regions in which the company is currently selling its cameras and drones? The United States, Argentina, Great Britain, and Japan Germany, Brazil, China, and the United States Europe-Africa, Latin America, Asia-Pacific, and North America Japan/China, North America, the European Union, and the Middle East Most of Latin America, Europe, China, and North America Correct Answer: Europe-Africa, Latin America, Asia-Pacific, and North America The factors that affect a company's P/Q rating for UAV drones include The company's brand reputation, the warranty claim rate, and the size of the assembly quality incentives paid to drone PAT members The caliber of the build-in action-capture camera, warranty claim costs, the company's prior-year worldwide share of UAV drone sales, and whether the company's drone lineup consists of 5 or more models The image sensors of the build-in camera, the image quality of the action videos, the length of the warranty period, and the hourly wage rate paid to members of drone PATs The number of suppliers the company utilizes for its purchases of drone materials and components, the prices it pays for these components / materials, and the brand reputations of the suppliers The caliber of the build-in GPS/WiFi/Bluetooth components, rotor performance and flight controller features / performance, and body frame construction. 8 Correct Answer: The caliber of the build-in GPS/WiFi/Bluetooth components, rotor performance and flight controller features / performance, and body frame construction. Which of the following statements about crafting a strategy to be competitively successful in the markets for action cameras and drones is NOT true? The most powerful strategy and competitive approach a company can employ is most often one of differentiating your company's cameras / drones from rival brands based on such attributes as product performance and quality, number of models, warranties, and other competitive factors that matter a lot to buyers - and thereby outcompete rivals with a product offering that has greater overall appeal to a highly profitable number of buyers In GLO-BUS, there are multiple strategic approaches and sets of competitive efforts / action that, if properly designed and well-executed are capable of producing competitive success in the global market for cameras / drones, provided they are not overpowered or thwarted by even more potent strategic approaches and competitive actions / effo Correct Answer: The most powerful strategy and competitive approach a company can employ is most often one of differentiating your company's cameras / drones from rival brands based on such attributes as product performance and quality, number of models, warranties, and other competitive factors that matter a lot to buyers - and thereby outcompete rivals with a product offering that has greater overall appeal to a highly profitable number of buyers Which of the following is NOT accurate as concerns the retailers and buyers of actioncapture cameras? 9 Potential buyers of action-capture cameras pay at least some attention to the media ads they see for various action cameras brands and their purchasing decision are to some degree influenced by these ads. The buyers of action cameras in North America and Europe-Africa are less sensitive to cross-brand price differences than are camera buyers in the Latin America and the Asia-Pacific regions Many action camera buyers do considerable comparison shopping before making a decision about which camera brand to buy- they are aware of the prices and P/Q ratings of rivals brands, the various retail locations and websites where action cameras can be purchased, the warranties of rival brands, and the fact that retailers have periodic weekly sales promotions that feature sizable discounts off the regular retail price. The buyer Correct Answer: The buyers of action cameras in Latin America and the Asia-Pacific region are more sensitive to cross-brand differences in P/Q ratings than are action camera buyers in North America and Europe-Africa. Which of the following statements about your company's assembly operations for cameras and drones is true? All of the company's capital expenditures for fixed assets (facilities, workstations, robotics upgrades, office equipment, and furnishings) at the Taiwan plant site are depreciated over 25 years at the rate of 4% annually Installing robots at each camera/drone workstation enables the size of camera/drone PATs to be cut from 5 persons to 4 persons 10 Shifting to robot-assisted assembly results in added annual maintenance costs per workstation because robots require monthly maintenance and also, from time to time, break down and have to be repaired. The maximum number of cameras / drones that can be assembled at overtime is 20% of annual PAT productivity (the number of units a camera/drone PAT assembles each year) - however, if robotics upgrades are undertaken, the maximum rises to 30% of annual PAT productivity The Correct Answer: Shifting to robot-assisted assembly results in added annual maintenance costs per workstation because robots require monthly maintenance and also, from time to time, break down and have to be repaired. The factors that affect the productivity of camera/drone PATs include The size of assembly quality incentives paid to PATs, the size of the fringe benefits package, how the total compensation packages (not including overtime pay) of PAT members compare to the all-company average compensation levels, and the amount a company spends annually per camera/drone PAT on training and productivityenhancing assembly methods. Perfect attendance bonuses, how much overtime is offered to PATs so as to boost their take-home pay, how many PAT members leave the company for jobs elsewhere, and the size of the year-end bonuses awarded to PATs for beating their annual assembly quotas and lowering warranty claim rates 11 The complexity of the company's camera/drone designs, cumulative spending for new product R&D for cameras / drones, the size of weekly bonuses paid to PAT members for beating the weekly PAT assembly quota, and the number Correct Answer: The size of assembly quality incentives paid to PATs, the size of the fringe benefits package, how the total compensation packages (not including overtime pay) of PAT members compare to the all-company average compensation levels, and the amount a company spends annually per camera/drone PAT on training and productivity-enhancing assembly methods. Which of the following is NOT one of the five measures on which a company's performance is judged/scored? Revenues Stock price appreciation Credit rating and image rating Earnings per share Average return on shareholders' equity (ROE) Correct Answer: Revenues Which of the following currencies are involved in affecting the revenues your company received ton shipments of action-cameras and UAV drones to buyers in the four geographic regions where it does business? Euros, US dollars, Japanese yen, Hong Kong dollars, Argentine pesos, and the Taiwan dollar 12 The Argentine peso. Euros, Japanese yen, Indian rupees, US dollars and Chinese renminbi Singapore dollars, euros, US dollars, the Brazilian real, and Taiwan dollars US dollars, euros, Hong Kong dollars, Japanese yen, and Mexican pesos US dollars, Swiss francs, Hong Kong dollars, Argentine pesos, and Taiwan dollar Correct Answer: Singapore dollars, euros, US dollars, the Brazilian real, and Taiwan dollars Which of the following is one of the factors that determine a company's credit rating? The percentage of the net income the company allocates in the prior two years to paying back loans outstanding The company's average return on shareholder's equity over the most recent three years The company's dividend payout ratio A company's worldwide market share in action cameras and UAV drones Its interest coverage ratio Correct Answer: Its interest coverage ratio Officials at Global Community Bank, under terms of its long-term banking agreement with the company, have agreed to lend the company additional monies should you elect to use debt to help finance growth and other financial need; the interest rate that will be charged on such loans is tied to 13 The payback period (1-year, 5-years, 10-years) and whether the company's gross profit margins, operating profit margins, and net profit margins the previous two years are above/below the industry averages and by how much The company's net profit margin the past two years, the percentage of free cash flows (defined as net income plus depreciation less dividend payments) the company has the ability to use to make interest payments, and the company's current credit rating How many consecutive years the company has been profitable, its current ratio, its interest coverage ratio, its debt-assets ratio, and the payback period (1-year, Correct Answer: The company's current credit rating, going rates of interest in world financial markets, and the payback period (1-year, 5-years, 10-years) Whether a maker of action cameras is charging an average wholesale price for its models that makes it price competitive with the prices being charged by rival companies in the region is determined by Whether the average wholesale price for its camera models is within $20 of the lowest average wholesale price being charged in the region All companies with average wholesale prices within $20 of the lowest-price in the region are considered to be price competitive; all other companies are considered to be charging average wholesale prices that are NOT competitive Whether its average wholesale price is at least $50 below the average wholesale price is of the highest-priced camera brand in the region; all companies with average wholesale prices $50 or more below the price of the highest-priced company are 14 considered to be price competitive. All other companies are considered to be charging average wholesale prices that a Correct Answer: How far its average wholesale price in the region is above or below the regional average wholesale price The factors that affect the P/Q rating of a company's action cameras do NOT include A company's cumulative spending on product R&D or the amount a company spends on training its camera-related PATs and improving the quality of its camera-related assembly methods (since such spending can affect defects encountered and the need for repairs) The size of the LCD display screen or the image quality of the pictures/video The size of assembly quality incentives it pays to camera PAT members, warranty claim rates, or the percentage of camera assembly workstations that utilize robot-assisted assembly methods Image sensor size or the image quality of the videos and still pictures or the number of photo modes for videos and still pictures Camera housing or editing/sharing capabilities or included accessories Correct Answer: The size of assembly quality incentives it pays to camera PAT members, warranty claim rates, or the percentage of camera assembly workstations that utilize robot-assisted assembly methods