BSG Quiz 1 with Question, Answer and
Rationale 2025
the interest rate a company pays on loans outstanding depends on ------- Correct Ans ----------
the credit rating
the factors that affect worker productivity include ------- Correct Ans ---------- the size of incentive
payments per non-defective pair, base pay increases, how favorably a company's compensation
package compares with the industry-average compensation package, and expenditures for best
practices training.
at the end of Year 10, going into Year 11, the company's production capability was ------- Correct
Ans ---------- 6 million pairs without the use of overtime and 7.2 million pairs with the use of
overtime.
which one of the following is NOT a factor in determining a company's unit sales and market
share of branded footwear in a particular geographic region?
ARE ------- Correct Ans ---------- performance/durability (P/D) ratings
- expenditures on advertising
- the number of models/styles in the company's product line
- mail-in rebate offers
- delivery times to retailers (1,2,3,or4weeks)
,which of the following are the four geographic regions in which the company sells branded and
private-label athletic footwear? ------- Correct Ans ---------- North America, Latin America, Asia-
Pacific, an Europe-Africa
which of the following are factors in determining a company's credit rating? ------- Correct Ans --
-------- its debt-asst ratio, default risk ratio, and interest coverage ratio
which of the following best describes the materials the company uses to make its footwear? -----
-- Correct Ans ---------- standard and superior materials
the market for branded athletic footwear is projected to grow ------- Correct Ans ---------- 9-11%
annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 5-7%
annually in North America an Europe-Africa during the Year 11-Year 15 period.
in Year 11, footwear companies can expect to sell ------- Correct Ans ---------- an average of 4.84
million branded pairs and an average of 800,000 private-label pairs, although sales at some
companies may run higher of lower than the averages due to differing levels of competitive
effort.
which of the following currencies are involved in affecting the operations of your company's
athletic footwear business? ------- Correct Ans ---------- Singapore dollars, euros, U.S. dollars, and
Brazilian reals
a footwear-maker's price competitiveness in selling branded footwear to retailers in a particular
geographic region is determined by ------- Correct Ans ---------- whether its wholesale price is
above or below the average wholesale price of all companies competing in that geographic
region.
the company currently has production facilities to make athletic footwear in ------- Correct Ans --
-------- Asia-Pacific and North America
,which one of the following is NOT one of the factors that affect the S/Q rating of a company's
footwear?
ARE ------- Correct Ans ---------- how much is spent to inspect newly-produced pairs and avoid
shipping defective shoes
- expenditures for best practices training
- the percentage use of superior materials
- a company's cumulative spending for TQM/Six Sigma quality control programs
- expenditures for new styling/features per model and whether plant upgrade option C has
been installed
which of the following are the 5 measures on which a company's performance is
judged/scored? ------- Correct Ans ---------- Earnings per share, ROE, stock price, credit rating,
and image rating
which of the following most accurately describes your company's plant operations? -------
Correct Ans ---------- TQM/Six Sigma quality control programs and best practices training are
used to boost the S/Q ratings of both branded and private-label footwear.
the company's shipments of newly-produced branded and private-label footwear from its plants
to its regional distribution centers are subject to ------- Correct Ans ---------- any applicable
import tariffs and exchange rate adjustments.
the reject rates at the company's footwear plants are a function of ------- Correct Ans ----------
the size of the incentive payment per non-defective pair produced, spending for best practices
training, spending for TWQ/Six Sigma quality control, the number of models/styles comprising
the company's product line, and the installation of plant upgrade option A.
, which of the following are components of the compensation package for production workers at
your company's plants? ------- Correct Ans ---------- base wages, incentive payments per non
defective pair produced, and overtime pay
the market for private-label athletic footwear is projected to grow ------- Correct Ans ----------
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually
in all four regions during the Year 16-Year 20 period.
which of the following is the most important factor in determining a company's unit sales and
market share of private-label footwear in a particular geographic region? ------- Correct Ans ------
---- the company's bed price
The factors that affect the reject rates at the company's footwear production facilities include ---
---- Correct Ans ---------- the size of the incentive payment per non-defective pair produced, best
practices training expenditures per worker, spending for TQM/Six Sigma quality control efforts,
and the number of models/styles comprising the company's product line.
Which of the following is the most important competitive factor in determining a company's
ability to secure contracts to supply private-label footwear to chain retailers in a particular
geographic region? ------- Correct Ans ---------- The company's price offer
The company currently has production facilities to make athletic footwear in ------- Correct Ans -
--------- North America and Asia-Pacific
Which of the following statements about the average wholesale price a company charges
footwear retailers in a given geographic region is incorrect? ------- Correct Ans ---------- So long as
a company has a big price-based competitive advantage in a region's Wholesale Segment, it has
the ability to achieve an attractively-large sales volume and market share even if it suffers from
competitive disadvantages on other competitively-relevant factors.
Rationale 2025
the interest rate a company pays on loans outstanding depends on ------- Correct Ans ----------
the credit rating
the factors that affect worker productivity include ------- Correct Ans ---------- the size of incentive
payments per non-defective pair, base pay increases, how favorably a company's compensation
package compares with the industry-average compensation package, and expenditures for best
practices training.
at the end of Year 10, going into Year 11, the company's production capability was ------- Correct
Ans ---------- 6 million pairs without the use of overtime and 7.2 million pairs with the use of
overtime.
which one of the following is NOT a factor in determining a company's unit sales and market
share of branded footwear in a particular geographic region?
ARE ------- Correct Ans ---------- performance/durability (P/D) ratings
- expenditures on advertising
- the number of models/styles in the company's product line
- mail-in rebate offers
- delivery times to retailers (1,2,3,or4weeks)
,which of the following are the four geographic regions in which the company sells branded and
private-label athletic footwear? ------- Correct Ans ---------- North America, Latin America, Asia-
Pacific, an Europe-Africa
which of the following are factors in determining a company's credit rating? ------- Correct Ans --
-------- its debt-asst ratio, default risk ratio, and interest coverage ratio
which of the following best describes the materials the company uses to make its footwear? -----
-- Correct Ans ---------- standard and superior materials
the market for branded athletic footwear is projected to grow ------- Correct Ans ---------- 9-11%
annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 5-7%
annually in North America an Europe-Africa during the Year 11-Year 15 period.
in Year 11, footwear companies can expect to sell ------- Correct Ans ---------- an average of 4.84
million branded pairs and an average of 800,000 private-label pairs, although sales at some
companies may run higher of lower than the averages due to differing levels of competitive
effort.
which of the following currencies are involved in affecting the operations of your company's
athletic footwear business? ------- Correct Ans ---------- Singapore dollars, euros, U.S. dollars, and
Brazilian reals
a footwear-maker's price competitiveness in selling branded footwear to retailers in a particular
geographic region is determined by ------- Correct Ans ---------- whether its wholesale price is
above or below the average wholesale price of all companies competing in that geographic
region.
the company currently has production facilities to make athletic footwear in ------- Correct Ans --
-------- Asia-Pacific and North America
,which one of the following is NOT one of the factors that affect the S/Q rating of a company's
footwear?
ARE ------- Correct Ans ---------- how much is spent to inspect newly-produced pairs and avoid
shipping defective shoes
- expenditures for best practices training
- the percentage use of superior materials
- a company's cumulative spending for TQM/Six Sigma quality control programs
- expenditures for new styling/features per model and whether plant upgrade option C has
been installed
which of the following are the 5 measures on which a company's performance is
judged/scored? ------- Correct Ans ---------- Earnings per share, ROE, stock price, credit rating,
and image rating
which of the following most accurately describes your company's plant operations? -------
Correct Ans ---------- TQM/Six Sigma quality control programs and best practices training are
used to boost the S/Q ratings of both branded and private-label footwear.
the company's shipments of newly-produced branded and private-label footwear from its plants
to its regional distribution centers are subject to ------- Correct Ans ---------- any applicable
import tariffs and exchange rate adjustments.
the reject rates at the company's footwear plants are a function of ------- Correct Ans ----------
the size of the incentive payment per non-defective pair produced, spending for best practices
training, spending for TWQ/Six Sigma quality control, the number of models/styles comprising
the company's product line, and the installation of plant upgrade option A.
, which of the following are components of the compensation package for production workers at
your company's plants? ------- Correct Ans ---------- base wages, incentive payments per non
defective pair produced, and overtime pay
the market for private-label athletic footwear is projected to grow ------- Correct Ans ----------
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually
in all four regions during the Year 16-Year 20 period.
which of the following is the most important factor in determining a company's unit sales and
market share of private-label footwear in a particular geographic region? ------- Correct Ans ------
---- the company's bed price
The factors that affect the reject rates at the company's footwear production facilities include ---
---- Correct Ans ---------- the size of the incentive payment per non-defective pair produced, best
practices training expenditures per worker, spending for TQM/Six Sigma quality control efforts,
and the number of models/styles comprising the company's product line.
Which of the following is the most important competitive factor in determining a company's
ability to secure contracts to supply private-label footwear to chain retailers in a particular
geographic region? ------- Correct Ans ---------- The company's price offer
The company currently has production facilities to make athletic footwear in ------- Correct Ans -
--------- North America and Asia-Pacific
Which of the following statements about the average wholesale price a company charges
footwear retailers in a given geographic region is incorrect? ------- Correct Ans ---------- So long as
a company has a big price-based competitive advantage in a region's Wholesale Segment, it has
the ability to achieve an attractively-large sales volume and market share even if it suffers from
competitive disadvantages on other competitively-relevant factors.
