Quiz2 Globus WITH
QUESTIONS AND
WELL VERIFED Making it a regular practice to pay an
ANSWERS annual dividend to shareholders that is
Which of the following is not an action lower every year, perhaps even reaching
company co-managers can take that will levels approaching 30% to 50% less than
help the company meet or beat the in- in Year 11 -- this is because retaining a
vestor-expected ROE targets in upcom- progressively larger fraction of net earn-
ing years? ings 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 en-
thusiastically approve of their employer's
commitment to good corporate citizen-
ship).
- the positive impact such spending has
on increasing the company's image rat- the positive impact such spending has on
ing. increasing the company's image rating.
- the positive impact such spending has
on increasing the company's credit rat-
ing.
- 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
Which one of the following results from
the latest decision round is LEAST im-
The financial statement data shown on
portant in providing guidance to compa-
page 5 of the Company Operating Re-
ny managers in making strategic moves
ports
and decisions to improve their compa-
ny's competitiveness and rank among
1/8
, Quiz2 Globus WITH
QUESTIONS AND
WELL VERIFED
the top-performing companies in the cur-
ANSWERS
rent decision round?
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
Trying to keep the warranty period to 60
over rival companies based on lower
days or 90 days (but no more than 120
overall costs per UAV drone sold?
days), if it is competitively feasible to do
- Trying to keep the warranty period to 60
so
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
Which one of the following actions is a re-
liable way for managers to try to increase
the company's EPS?
- Allocating a sizable portion of the com-
pany'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 re-
sulting savings on labor costs per cam-
Allocating a sizable portion of the com-
era/drone sold will boost total profits and
pany's internal cash flows each year to
EPS
repurchasing shares of the company's
- Striving to gain additional sales and
common stock
market share of both cameras and
drones by underpricing all rival compa-
nies in each of the four geographic re-
gions
- 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
2/8
QUESTIONS AND
WELL VERIFED Making it a regular practice to pay an
ANSWERS annual dividend to shareholders that is
Which of the following is not an action lower every year, perhaps even reaching
company co-managers can take that will levels approaching 30% to 50% less than
help the company meet or beat the in- in Year 11 -- this is because retaining a
vestor-expected ROE targets in upcom- progressively larger fraction of net earn-
ing years? ings 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 en-
thusiastically approve of their employer's
commitment to good corporate citizen-
ship).
- the positive impact such spending has
on increasing the company's image rat- the positive impact such spending has on
ing. increasing the company's image rating.
- the positive impact such spending has
on increasing the company's credit rat-
ing.
- 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
Which one of the following results from
the latest decision round is LEAST im-
The financial statement data shown on
portant in providing guidance to compa-
page 5 of the Company Operating Re-
ny managers in making strategic moves
ports
and decisions to improve their compa-
ny's competitiveness and rank among
1/8
, Quiz2 Globus WITH
QUESTIONS AND
WELL VERIFED
the top-performing companies in the cur-
ANSWERS
rent decision round?
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
Trying to keep the warranty period to 60
over rival companies based on lower
days or 90 days (but no more than 120
overall costs per UAV drone sold?
days), if it is competitively feasible to do
- Trying to keep the warranty period to 60
so
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
Which one of the following actions is a re-
liable way for managers to try to increase
the company's EPS?
- Allocating a sizable portion of the com-
pany'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 re-
sulting savings on labor costs per cam-
Allocating a sizable portion of the com-
era/drone sold will boost total profits and
pany's internal cash flows each year to
EPS
repurchasing shares of the company's
- Striving to gain additional sales and
common stock
market share of both cameras and
drones by underpricing all rival compa-
nies in each of the four geographic re-
gions
- 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
2/8
