Quiz2 Globus Questions and Complete
Solutions Graded A+
Which of the following is not an action company co-managers can take that will help the company meet
or beat the investor-expected ROE targets in upcoming years? - Answer: Making it a regular practice to
pay an annual dividend to shareholders that is lower every year, perhaps even reaching levels
approaching 30% to 50% less than in Year 11 -- this is because retaining a progressively larger fraction of
net earnings for use in the business makes it easier to achieve the higher ROE targets that investors
expect
One of the benefits of spending sizable sums of money for social responsibility initiatives and good
corporate citizenship over a multi-year period is
- increased job satisfaction on the part of most PAT members (because they enthusiastically approve of
their employer's commitment to good corporate citizenship).
- the positive impact such spending has on increasing the company's image rating.
- the positive impact such spending has on increasing the company's credit rating.
- the increased chances a company has in winning one or more Gold Star Awards for Corporate
Citizenship given by the World Council to Promote Exemplary Corporate Citizenship.
-increased P/Q ratings for both action cameras and UAV drones - Answer: the positive impact such
spending has on increasing the company's image rating.
Which one of the following results from the latest decision round is LEAST important in providing
guidance to company managers in making strategic moves and decisions to improve their company's
competitiveness and rank among the top-performing companies in the current decision round? -
Answer: The financial statement data shown on page 5 of the Company Operating Reports
Which one of the following is unlikely to be an attractive and effective way to reduce the design,
assembly, marketing, and other costs of UAV drones and help achieve a sizable competitive advantage
over rival companies based on lower overall costs per UAV drone sold?
- Trying to keep the warranty period to 60 days or 90 days (but no more than 120 days), if it is
competitively feasible to do so
-Trying to keep the warranty period to 60 days (if rivals offer long warrant - Answer: Trying to keep the
warranty period to 60 days or 90 days (but no more than 120 days), if it is competitively feasible to do so
, Which one of the following actions is a reliable way for managers to try to increase the company's EPS?
- Allocating a sizable portion of the company's internal cash flows each year to issuing new shares of the
company's common stock
- Cutting total annual compensation per PAT member by 10% to 20%; the resulting savings on labor
costs per camera/drone sold will boost total profits and EPS
- Striving to gain additional sales and market share of both cameras and drones by underpricing all rival
companies in each of the four geographic regions
- Increasing spending on product R&D for both cameras and drones by 20% or more each decision
round; the resulting increases in a company's camera/drone P/Q ratings will boost both total profits and
EPS
- Allocating a sizable portion of the company's internal cash flows each year to repurchasing shares of
the company's common stock - Answer: Allocating a sizable portion of the company's internal cash flows
each year to repurchasing shares of the company's common stock
Which one of the following actions does not result in higher levels of PAT productivity in assembling
cameras or drones?
- Increasing the assembly quality incentive paid to PATS
- Increasing the annual bonus for perfect attendance paid to camera/drone PAT members from $800 to
$875
- Maintaining a total compensation package that is above the industry average total compensation
package (to minimize labor costs)
- Reducing the number of camera/drone models being assembled
-Reducing annual expenditures to train camera/drone PATs in best practice assembly methods (because
the time spent in training reduces the time available for assembling units) - Answer: Reducing annual
expenditures to train camera/drone PATs in best practice assembly methods (because the time spent in
training reduces the time available for assembling units)
The industry-low, industry-average, and industry-high cost benchmarks on pp. 6-7 of each issue of the
Camera & Drone Journal - Answer: are worth careful scrutiny by the managers of all companies because
they help managers determine if corrective actions are needed in the event their company's
camera/drone costs for one or more of the benchmarked cost categories do NOT appear to be
competitive (or close to "in line") with those of rival companies.
Which of the following is not an action that can help improve a company's credit rating? (The financial
measures used in determining company credit ratings are discussed in the Help document associated
Solutions Graded A+
Which of the following is not an action company co-managers can take that will help the company meet
or beat the investor-expected ROE targets in upcoming years? - Answer: Making it a regular practice to
pay an annual dividend to shareholders that is lower every year, perhaps even reaching levels
approaching 30% to 50% less than in Year 11 -- this is because retaining a progressively larger fraction of
net earnings for use in the business makes it easier to achieve the higher ROE targets that investors
expect
One of the benefits of spending sizable sums of money for social responsibility initiatives and good
corporate citizenship over a multi-year period is
- increased job satisfaction on the part of most PAT members (because they enthusiastically approve of
their employer's commitment to good corporate citizenship).
- the positive impact such spending has on increasing the company's image rating.
- the positive impact such spending has on increasing the company's credit rating.
- the increased chances a company has in winning one or more Gold Star Awards for Corporate
Citizenship given by the World Council to Promote Exemplary Corporate Citizenship.
-increased P/Q ratings for both action cameras and UAV drones - Answer: the positive impact such
spending has on increasing the company's image rating.
Which one of the following results from the latest decision round is LEAST important in providing
guidance to company managers in making strategic moves and decisions to improve their company's
competitiveness and rank among the top-performing companies in the current decision round? -
Answer: The financial statement data shown on page 5 of the Company Operating Reports
Which one of the following is unlikely to be an attractive and effective way to reduce the design,
assembly, marketing, and other costs of UAV drones and help achieve a sizable competitive advantage
over rival companies based on lower overall costs per UAV drone sold?
- Trying to keep the warranty period to 60 days or 90 days (but no more than 120 days), if it is
competitively feasible to do so
-Trying to keep the warranty period to 60 days (if rivals offer long warrant - Answer: Trying to keep the
warranty period to 60 days or 90 days (but no more than 120 days), if it is competitively feasible to do so
, Which one of the following actions is a reliable way for managers to try to increase the company's EPS?
- Allocating a sizable portion of the company's internal cash flows each year to issuing new shares of the
company's common stock
- Cutting total annual compensation per PAT member by 10% to 20%; the resulting savings on labor
costs per camera/drone sold will boost total profits and EPS
- Striving to gain additional sales and market share of both cameras and drones by underpricing all rival
companies in each of the four geographic regions
- Increasing spending on product R&D for both cameras and drones by 20% or more each decision
round; the resulting increases in a company's camera/drone P/Q ratings will boost both total profits and
EPS
- Allocating a sizable portion of the company's internal cash flows each year to repurchasing shares of
the company's common stock - Answer: Allocating a sizable portion of the company's internal cash flows
each year to repurchasing shares of the company's common stock
Which one of the following actions does not result in higher levels of PAT productivity in assembling
cameras or drones?
- Increasing the assembly quality incentive paid to PATS
- Increasing the annual bonus for perfect attendance paid to camera/drone PAT members from $800 to
$875
- Maintaining a total compensation package that is above the industry average total compensation
package (to minimize labor costs)
- Reducing the number of camera/drone models being assembled
-Reducing annual expenditures to train camera/drone PATs in best practice assembly methods (because
the time spent in training reduces the time available for assembling units) - Answer: Reducing annual
expenditures to train camera/drone PATs in best practice assembly methods (because the time spent in
training reduces the time available for assembling units)
The industry-low, industry-average, and industry-high cost benchmarks on pp. 6-7 of each issue of the
Camera & Drone Journal - Answer: are worth careful scrutiny by the managers of all companies because
they help managers determine if corrective actions are needed in the event their company's
camera/drone costs for one or more of the benchmarked cost categories do NOT appear to be
competitive (or close to "in line") with those of rival companies.
Which of the following is not an action that can help improve a company's credit rating? (The financial
measures used in determining company credit ratings are discussed in the Help document associated
