CAPSIM QUIZZES EXAM UPDATED QUESTIONS AND
ANSWERS
Market segments are named for:
a The customer's geographic region
b The customer's end product
c The manufacturer's geographic region
d The customer's top concern - CORRECT ANSWER✅✅✅d. The customer's top concern
Of the five market segments, which three are more concerned about leading-edge technology within
their respective segment expectations?
a Size Segment, Peformance Segment, and Traditional Segment
b Size Segment, Performance Segment, and Low End Segment
c Size Segment, Performance Segment, and High End Segment
d Low End Segment, Traditional Segment, and High End Segment - CORRECT ANSWER✅✅✅c Size
Segment, Performance Segment, and High End Segment
Each circle on the Perceptual Map represents:
a A market segment
b A group of like-minded customers
c Products
d Both a and b - CORRECT ANSWER✅✅✅d Both a and b
Your R&D functional area controls which of the following product attributes:
a Age, Size, Performance, and Price
b Price, Awareness, Accessibility, and Age
c Age, Size, Performance, and Awareness
d Size, Performance, Age, and Reliability - CORRECT ANSWER✅✅✅d Size, Performance, Age, and
Reliability
,In the marketing area, which expenditure drives customer awareness?
a Price
b MTBF
c Promotion Budget
d Sales Budget - CORRECT ANSWER✅✅✅c Promotion Budget
Customers ignore reliability above the expected range.
True
False - CORRECT ANSWER✅✅✅True
Before you can address your customers' continuous demand for lower prices, what must you do?
a Issue Stock
b Reduce Costs
c Issue Bonds
d Retire Bonds - CORRECT ANSWER✅✅✅b Reduce Costs
Over time, what will happen on the Perceptual Map to represent changes in the market segment
customer's expectations regarding Size and Performance?
a Circles remain stationary, representing customer's expectations for no changes in the technology of
the electronic sensors.
b Circles move towards the bottom right corner as customers demand that the sensors decrease in Size
and increase in Performance
c Products will move automatically as the circles move - CORRECT ANSWER✅✅✅b Circles move
towards the bottom right corner as customers demand that the sensors decrease in Size and increase in
Performance
c Products will move auto
In addition to expecting decreasing Size and increasing Performance of the sensors, what other
demands do Capstone customers place on the market?
a Decreasing price
b Increasing reliability
,c Demands for exclusive deals
d All the above - CORRECT ANSWER✅✅✅a Decreasing price
Promotion and Sales expenditures offer rapidly diminishing returns above what levels?
a About $3 million each
b $500K each
c About $2 million combined
d $500K combined - CORRECT ANSWER✅✅✅a About $3 million each
Whatever figure you enter in the "Your Sales Forecast" cell on the Marketing screen will automatically
be produced.
True
False - CORRECT ANSWER✅✅✅False
In the marketing area, which expenditure drives customer accessibility?
a Price
b MTBF
c Promotion Budget
d Sales Budget - CORRECT ANSWER✅✅✅d Sales Budget
What is the lag time between purchase and use of new and/or additional plant and equipment.
a 2 years
b none
c 1 year
d 6 months - CORRECT ANSWER✅✅✅c 1 year
Investments in plant automation and capacity increases will show up on the finance screen and in the
proformas. What options are provided for funding investments in plant improvements?
, a You may use expected profits from sales (if sufficient to also cover operating costs) and sell-offs of
existing plant capacity
b You may issue stocks and 10-year bonds within limits
c You may borrow short term funds from the bank (repayment required the following year
d All of the above are options, however long-term financing bonds) and issuing stocks are a better match
to invest in long-term assets such as plant improvements - CORRECT ANSWER✅✅✅d All of the
above are options, however long-term financing bonds) and issuing stocks are a better match to invest
in long-term assets such as plant improvements
Prices are established by which department?
a Marketing
b Research and Development
c Production
d Finance - CORRECT ANSWER✅✅✅a Marketing
Before finalizing finance decisions, decisions must be made in all other functional areas first. Otherwise,
how will the finance manager know what the financial projections and demands for capital look like?
True
False - CORRECT ANSWER✅✅✅True
The finance department must raise funds to finance all the company activities.Check all that are sources
of acquiring capital.
Current Debt
Profits
Bond Issues (long term debt)
Stock Issues
Retiring Stock (Stock buy Back)
Dividends - CORRECT ANSWER✅✅✅Current Debt
Profits
Bond Issues (long term debt)
Stock Issues
ANSWERS
Market segments are named for:
a The customer's geographic region
b The customer's end product
c The manufacturer's geographic region
d The customer's top concern - CORRECT ANSWER✅✅✅d. The customer's top concern
Of the five market segments, which three are more concerned about leading-edge technology within
their respective segment expectations?
a Size Segment, Peformance Segment, and Traditional Segment
b Size Segment, Performance Segment, and Low End Segment
c Size Segment, Performance Segment, and High End Segment
d Low End Segment, Traditional Segment, and High End Segment - CORRECT ANSWER✅✅✅c Size
Segment, Performance Segment, and High End Segment
Each circle on the Perceptual Map represents:
a A market segment
b A group of like-minded customers
c Products
d Both a and b - CORRECT ANSWER✅✅✅d Both a and b
Your R&D functional area controls which of the following product attributes:
a Age, Size, Performance, and Price
b Price, Awareness, Accessibility, and Age
c Age, Size, Performance, and Awareness
d Size, Performance, Age, and Reliability - CORRECT ANSWER✅✅✅d Size, Performance, Age, and
Reliability
,In the marketing area, which expenditure drives customer awareness?
a Price
b MTBF
c Promotion Budget
d Sales Budget - CORRECT ANSWER✅✅✅c Promotion Budget
Customers ignore reliability above the expected range.
True
False - CORRECT ANSWER✅✅✅True
Before you can address your customers' continuous demand for lower prices, what must you do?
a Issue Stock
b Reduce Costs
c Issue Bonds
d Retire Bonds - CORRECT ANSWER✅✅✅b Reduce Costs
Over time, what will happen on the Perceptual Map to represent changes in the market segment
customer's expectations regarding Size and Performance?
a Circles remain stationary, representing customer's expectations for no changes in the technology of
the electronic sensors.
b Circles move towards the bottom right corner as customers demand that the sensors decrease in Size
and increase in Performance
c Products will move automatically as the circles move - CORRECT ANSWER✅✅✅b Circles move
towards the bottom right corner as customers demand that the sensors decrease in Size and increase in
Performance
c Products will move auto
In addition to expecting decreasing Size and increasing Performance of the sensors, what other
demands do Capstone customers place on the market?
a Decreasing price
b Increasing reliability
,c Demands for exclusive deals
d All the above - CORRECT ANSWER✅✅✅a Decreasing price
Promotion and Sales expenditures offer rapidly diminishing returns above what levels?
a About $3 million each
b $500K each
c About $2 million combined
d $500K combined - CORRECT ANSWER✅✅✅a About $3 million each
Whatever figure you enter in the "Your Sales Forecast" cell on the Marketing screen will automatically
be produced.
True
False - CORRECT ANSWER✅✅✅False
In the marketing area, which expenditure drives customer accessibility?
a Price
b MTBF
c Promotion Budget
d Sales Budget - CORRECT ANSWER✅✅✅d Sales Budget
What is the lag time between purchase and use of new and/or additional plant and equipment.
a 2 years
b none
c 1 year
d 6 months - CORRECT ANSWER✅✅✅c 1 year
Investments in plant automation and capacity increases will show up on the finance screen and in the
proformas. What options are provided for funding investments in plant improvements?
, a You may use expected profits from sales (if sufficient to also cover operating costs) and sell-offs of
existing plant capacity
b You may issue stocks and 10-year bonds within limits
c You may borrow short term funds from the bank (repayment required the following year
d All of the above are options, however long-term financing bonds) and issuing stocks are a better match
to invest in long-term assets such as plant improvements - CORRECT ANSWER✅✅✅d All of the
above are options, however long-term financing bonds) and issuing stocks are a better match to invest
in long-term assets such as plant improvements
Prices are established by which department?
a Marketing
b Research and Development
c Production
d Finance - CORRECT ANSWER✅✅✅a Marketing
Before finalizing finance decisions, decisions must be made in all other functional areas first. Otherwise,
how will the finance manager know what the financial projections and demands for capital look like?
True
False - CORRECT ANSWER✅✅✅True
The finance department must raise funds to finance all the company activities.Check all that are sources
of acquiring capital.
Current Debt
Profits
Bond Issues (long term debt)
Stock Issues
Retiring Stock (Stock buy Back)
Dividends - CORRECT ANSWER✅✅✅Current Debt
Profits
Bond Issues (long term debt)
Stock Issues
