MBA ASSESSMENT WITH CORRECT
SOLUTIONS
Which fof fthe ffollowing forganizations fis fmost flikely fto fuse fproject ffinancing?
a) fa fsmall fstart-up
b) fa ffinancial fservices ffirm fwith fan fextensive fclient flist
c) fa flarge fconsumer fgoods fcompany
d)a flarge fpublic futility finvolved fin finfrastructure fdevelopment f- fCORRECT✅✅d) fa
flarge fpublic futility finvolved fin finfrastructure fdevelopment
After fan fextensive frecruitment fprocess fto fselect fwell-qualified findividuals, fa flarge
fpercent fof fa fcompany's fnew fhires fresigned fwithin fthe ffirst fmonth fof fthe fjob. fWhich fof
fthe ffollowing fis fthe fmost flikely fexplanation ffor fthis fsituation. f
a) fthe ftraining fprocess fto fprepare fthe fnew fhires ffor ftheir fassigned ftasks fwas
finadequate
b) fthe fhealth fbenefits fprovided fby fthe fcompany fwere fnot fcompetitive fwith fthose fof
fthe frest fof fthe findustry
c) fthe fstarting fsalary ffor fthe fnew fhires fwas fnot fcompetitive fwith fthat fof fthe frest fof fthe
findustry
d) fthe fnew fhires flacked fthe fbasic fskills frequired fto flearn fthe fjob f- fCORRECT✅✅a)
fthe ftraining fprocess fto fprepare fthe fnew fhires ffor ftheir fassigned ftasks fwith
finadequate
Prosco fLtd. femploys fa fprocess fcost fsystem. fInspection fof funits foccurs fat fthe f50
fpercent fmark. fDefective funits fare fthen fremoved ffrom fthe fprocess, fand ftheir fcost
f($4.50) fis fabsorbed fby fthe fgood funits. fProsco fhas frecently fbeen fapproached fby fa
ffirm fwishing fto fbuy fthe fdefective funits ffor fa fspecial fuse. fThe ffirm fwould frequire
fProsco fto fmodify fthe fdefective funits fat fa funit fcost fof f$2.00. fIf fProsco fsells fthe
fdefective funits fto fthe ffirm ffor f$5.00 feach, fhow fwould fProsco's freported fincome fbe
faffected? f
(A) fIt fwould fdecrease fby f$4.50 fper funit fsold. f
(B) fIt fwould fdecrease fby f$1.50 fper funit fsold. f
(C) fIt fwould fincrease fby f$3.00 fper funit fsold. f
(D) fIt fwould fincrease fby f$5.00 fper funit fsold. f- fCORRECT✅✅c) fit fwould fincrease fby
f$3.00 fper funit fsold
Some fcompanies fhave flittle, fif fany, fnet fincome for fearnings, fyet fthey fseem fto fhave fall
fthe fmoney fthey fneed ffor fcapital fexpenditures. fWhich fof fthe ffollowing fbest fexplains
fhow fsuch fcompanies foperate?
f(A) fThey fhave fgood fcash fflows. f(B) fThey flease fcapital fequipment fthat fdoes fnot
fshow fup fon fbalance fsheets. f
(C) fThey fhave faccounts fwith fmany fdifferent fbanks. f
, (D) fThey fissue fwarrants fto ftheir fofficers. f- fCORRECT✅✅A) fthey fhave fgood fcash
fflows
The fSintar fCorporation fhas fjust fannounced fthat fit fwill fpay f$1.10 fper fshare fin
fdividends fto fits fstockholders fin fthe fcurrent fquarter. fThe fprior fquarter's fdividend fwas
f$1.00 fper fshare. fThe fannouncement findicates fwhich fof fthe ffollowing?
f(A) fManagement fis fsending fa fsignal fthat fit fexpects fthe feconomy fto fexpand. f
(B) fManagement fis fsending fa fsignal fthat fthe fcompany fhas fgood fprojected ffuture
fearnings.
f(C) fWhile fthe fcompany fwas fable fto fpay fa fhigher fdividend, fmanagement fpreferred fa
fmore fconservative ffigure. f
(D) fThe fcompany fhas foverextended fits fcash fposition fand fmay fhave fliquidity
fproblems fin fthe ffuture. f- fCORRECT✅✅B) fmanagement fis fsending fa fsignal fthat fthe
fcompany fhas fgood fprojected ffuture fearnings
Wave fInc. fis fa ftelecommunications fcompany fthat fwants fto fbecome finvolved fin fe-
commerce. fIt fhas fto fdecide fwhether fto fdevelop fa fbusiness-to-business for fbusiness-
to-consumer fstrategy. fAs fWave's fstrategic fplanner, fyou fhave fbeen fasked fto fdevelop
fa fbusiness fplan ffor feach fopportunity fand fpresent fthese fto fsenior fmanagement. fThe
fanswer fto fwhich fof fthe ffollowing fquestions fis fmost fimportant fto fknow fbefore fstarting
fyour fplan?
f(A) fWhat fare fthe fcompany's fcore fcompetencies? f
(B) fWhat fis fthe fpotential fmarket fsize? f
(C) fWhat fis fthe fimpact fon fthe festimated frevenue? f
(D) fDoes fthe fcompany fhave fe-commerce fcapabilities? f- fCORRECT✅✅A) fwhat fare
fthe fcompany's fcore fcompetencies?
If fyou fwere fthe fholder fof fa fcall foption f(having fcost fyou f$2) fon fsome fstock fwith fan
fexercise fprice fof f$20, fit fwould fbe fbest ffor fyou fto fexercise fyour foption fwhen fthe
fmarket fprice fis fat f
(A) f$18 f.
(B) f$20 f
.(C) f$22 f
(D) f$24 f- fCORRECT✅✅(D) f$24
Increased fglobalization fand ftechnological fchange, fparticularly fin ftelecommunications,
fenable fmore forganizations fto fadopt fwhich fof fthe ffollowing forganizational fstructures? f
(A) fFunctional
f(B) fMatrix f
(C) fNetwork f
(D) fMechanistic f- fCORRECT✅✅(C) fNetwork
A fnew flocal fSuper fStore fpublicly fannounced fthat fwhen fmore fthan fthree fpeople fare
fstanding fin fline fat fcash fregisters, fadditional fcheckout-lines fwill fbe fopened. fAfter fthe
fannouncement, fcustomers fquickly fnoticed fthat fthe fadditional flines fwere fnot fopened
funtil fsix for fseven fpeople fwere fstanding fin fline. fThis findicates fa fgap fbetween f
SOLUTIONS
Which fof fthe ffollowing forganizations fis fmost flikely fto fuse fproject ffinancing?
a) fa fsmall fstart-up
b) fa ffinancial fservices ffirm fwith fan fextensive fclient flist
c) fa flarge fconsumer fgoods fcompany
d)a flarge fpublic futility finvolved fin finfrastructure fdevelopment f- fCORRECT✅✅d) fa
flarge fpublic futility finvolved fin finfrastructure fdevelopment
After fan fextensive frecruitment fprocess fto fselect fwell-qualified findividuals, fa flarge
fpercent fof fa fcompany's fnew fhires fresigned fwithin fthe ffirst fmonth fof fthe fjob. fWhich fof
fthe ffollowing fis fthe fmost flikely fexplanation ffor fthis fsituation. f
a) fthe ftraining fprocess fto fprepare fthe fnew fhires ffor ftheir fassigned ftasks fwas
finadequate
b) fthe fhealth fbenefits fprovided fby fthe fcompany fwere fnot fcompetitive fwith fthose fof
fthe frest fof fthe findustry
c) fthe fstarting fsalary ffor fthe fnew fhires fwas fnot fcompetitive fwith fthat fof fthe frest fof fthe
findustry
d) fthe fnew fhires flacked fthe fbasic fskills frequired fto flearn fthe fjob f- fCORRECT✅✅a)
fthe ftraining fprocess fto fprepare fthe fnew fhires ffor ftheir fassigned ftasks fwith
finadequate
Prosco fLtd. femploys fa fprocess fcost fsystem. fInspection fof funits foccurs fat fthe f50
fpercent fmark. fDefective funits fare fthen fremoved ffrom fthe fprocess, fand ftheir fcost
f($4.50) fis fabsorbed fby fthe fgood funits. fProsco fhas frecently fbeen fapproached fby fa
ffirm fwishing fto fbuy fthe fdefective funits ffor fa fspecial fuse. fThe ffirm fwould frequire
fProsco fto fmodify fthe fdefective funits fat fa funit fcost fof f$2.00. fIf fProsco fsells fthe
fdefective funits fto fthe ffirm ffor f$5.00 feach, fhow fwould fProsco's freported fincome fbe
faffected? f
(A) fIt fwould fdecrease fby f$4.50 fper funit fsold. f
(B) fIt fwould fdecrease fby f$1.50 fper funit fsold. f
(C) fIt fwould fincrease fby f$3.00 fper funit fsold. f
(D) fIt fwould fincrease fby f$5.00 fper funit fsold. f- fCORRECT✅✅c) fit fwould fincrease fby
f$3.00 fper funit fsold
Some fcompanies fhave flittle, fif fany, fnet fincome for fearnings, fyet fthey fseem fto fhave fall
fthe fmoney fthey fneed ffor fcapital fexpenditures. fWhich fof fthe ffollowing fbest fexplains
fhow fsuch fcompanies foperate?
f(A) fThey fhave fgood fcash fflows. f(B) fThey flease fcapital fequipment fthat fdoes fnot
fshow fup fon fbalance fsheets. f
(C) fThey fhave faccounts fwith fmany fdifferent fbanks. f
, (D) fThey fissue fwarrants fto ftheir fofficers. f- fCORRECT✅✅A) fthey fhave fgood fcash
fflows
The fSintar fCorporation fhas fjust fannounced fthat fit fwill fpay f$1.10 fper fshare fin
fdividends fto fits fstockholders fin fthe fcurrent fquarter. fThe fprior fquarter's fdividend fwas
f$1.00 fper fshare. fThe fannouncement findicates fwhich fof fthe ffollowing?
f(A) fManagement fis fsending fa fsignal fthat fit fexpects fthe feconomy fto fexpand. f
(B) fManagement fis fsending fa fsignal fthat fthe fcompany fhas fgood fprojected ffuture
fearnings.
f(C) fWhile fthe fcompany fwas fable fto fpay fa fhigher fdividend, fmanagement fpreferred fa
fmore fconservative ffigure. f
(D) fThe fcompany fhas foverextended fits fcash fposition fand fmay fhave fliquidity
fproblems fin fthe ffuture. f- fCORRECT✅✅B) fmanagement fis fsending fa fsignal fthat fthe
fcompany fhas fgood fprojected ffuture fearnings
Wave fInc. fis fa ftelecommunications fcompany fthat fwants fto fbecome finvolved fin fe-
commerce. fIt fhas fto fdecide fwhether fto fdevelop fa fbusiness-to-business for fbusiness-
to-consumer fstrategy. fAs fWave's fstrategic fplanner, fyou fhave fbeen fasked fto fdevelop
fa fbusiness fplan ffor feach fopportunity fand fpresent fthese fto fsenior fmanagement. fThe
fanswer fto fwhich fof fthe ffollowing fquestions fis fmost fimportant fto fknow fbefore fstarting
fyour fplan?
f(A) fWhat fare fthe fcompany's fcore fcompetencies? f
(B) fWhat fis fthe fpotential fmarket fsize? f
(C) fWhat fis fthe fimpact fon fthe festimated frevenue? f
(D) fDoes fthe fcompany fhave fe-commerce fcapabilities? f- fCORRECT✅✅A) fwhat fare
fthe fcompany's fcore fcompetencies?
If fyou fwere fthe fholder fof fa fcall foption f(having fcost fyou f$2) fon fsome fstock fwith fan
fexercise fprice fof f$20, fit fwould fbe fbest ffor fyou fto fexercise fyour foption fwhen fthe
fmarket fprice fis fat f
(A) f$18 f.
(B) f$20 f
.(C) f$22 f
(D) f$24 f- fCORRECT✅✅(D) f$24
Increased fglobalization fand ftechnological fchange, fparticularly fin ftelecommunications,
fenable fmore forganizations fto fadopt fwhich fof fthe ffollowing forganizational fstructures? f
(A) fFunctional
f(B) fMatrix f
(C) fNetwork f
(D) fMechanistic f- fCORRECT✅✅(C) fNetwork
A fnew flocal fSuper fStore fpublicly fannounced fthat fwhen fmore fthan fthree fpeople fare
fstanding fin fline fat fcash fregisters, fadditional fcheckout-lines fwill fbe fopened. fAfter fthe
fannouncement, fcustomers fquickly fnoticed fthat fthe fadditional flines fwere fnot fopened
funtil fsix for fseven fpeople fwere fstanding fin fline. fThis findicates fa fgap fbetween f
