GLOBUS QUIZ 1 ANSWERS – BARUCH
COLLEGE, CUNY – BPL 5100 || 2025/2026
VERIFIED SOLUTIONS WITH CORRECT
ANSWERS || 100% GUARANTEED A+
Q1.
In GLO-BUS, a company’s overall performance grade is based on:
A. Profit growth only
B. A weighted index of EPS, ROE, stock price, credit rating, and image rating
C. Total units sold in all regions
D. Sustainability initiatives alone
Answer: B. Overall performance reflects multiple weighted measures, not just profitability or
sales volume.
Q2.
Which approach best supports a sustainable competitive advantage in the GLO-BUS
simulation?
A. Aggressively cutting prices below cost to boost sales
B. Building differentiation through superior quality, brand strength, and technical features
C. Expanding plant capacity without considering demand projections
D. Eliminating marketing to maximize short-term profits
Answer: B. Long-term competitiveness comes from differentiation rather than short-term cost
cutting.
Q3.
Spending on CSR initiatives (e.g., recycling, green policies, workforce programs) in GLO-BUS
most directly enhances:
A. Image rating and stakeholder goodwill
B. Sales only in Latin America
C. Earnings per share
D. Short-term profitability
,Answer: A. CSR primarily strengthens brand image and reputation, indirectly influencing
competitiveness.
Q4.
Why is it important to track a company’s credit rating in the simulation?
A. It affects the cost of borrowing and signals financial stability
B. It immediately increases global demand
C. It reduces advertising expenses
D. It has no bearing on company outcomes
Answer: A. Higher credit ratings lower interest costs and boost investor confidence.
Q5.
Before expanding production facilities in GLO-BUS, the most critical factor to evaluate is:
A. Projected demand trends in each global region
B. Current company stock performance
C. CSR spending levels
D. Competitor advertising activity
Answer: A. Expanding capacity without demand growth risks costly overcapacity.
Q6.
Why can focusing too much on market share harm performance in GLO-BUS?
A. Market share isn’t considered in the game results
B. It often requires steep price cuts that lower EPS and stock price
C. Companies are penalized for gaining high market share
D. It automatically reduces credit ratings
Answer: B. Market share growth at the expense of profitability undermines shareholder
returns.
Q7.
Which decision has the strongest direct impact on a company’s image rating?
A. Reducing long-term debt
B. Investments in CSR, celebrity endorsements, and product quality improvements
C. Reducing base wages
, D. Adjusting hedging against currency risks
Answer: B. Image rating is primarily shaped by quality, endorsements, and CSR efforts.
Q8.
A company pursuing a low-cost leadership strategy in GLO-BUS should prioritize:
A. Achieving economies of scale and reducing SG&A expenses
B. Heavy spending on celebrity endorsements and premium materials
C. Keeping capacity deliberately low to minimize risk
D. Emphasizing CSR over operational efficiency
Answer: A. Efficiency and scale are key drivers of a successful cost-leadership strategy.
Q9.
Which performance measure best reflects investor expectations in the simulation?
A. Return on Equity (ROE)
B. Market share in each region
C. Brand advertising spend
D. Labor productivity rates
Answer: A. ROE demonstrates how effectively investor funds generate returns.
Q10.
Exchange rate fluctuations in GLO-BUS mainly influence:
A. Profit margins and regional cost advantages
B. Employee satisfaction
C. Endorsement contracts
D. Advertising allocations
Answer: A. Currency shifts alter production costs and regional profitability.
Q11.
Why must managers balance short-term EPS with long-term investments in GLO-BUS?
A. The simulation penalizes short-term success
B. Focusing only on EPS may sacrifice R&D, CSR, or branding, reducing long-term
competitiveness
C. EPS has little relevance for investors
COLLEGE, CUNY – BPL 5100 || 2025/2026
VERIFIED SOLUTIONS WITH CORRECT
ANSWERS || 100% GUARANTEED A+
Q1.
In GLO-BUS, a company’s overall performance grade is based on:
A. Profit growth only
B. A weighted index of EPS, ROE, stock price, credit rating, and image rating
C. Total units sold in all regions
D. Sustainability initiatives alone
Answer: B. Overall performance reflects multiple weighted measures, not just profitability or
sales volume.
Q2.
Which approach best supports a sustainable competitive advantage in the GLO-BUS
simulation?
A. Aggressively cutting prices below cost to boost sales
B. Building differentiation through superior quality, brand strength, and technical features
C. Expanding plant capacity without considering demand projections
D. Eliminating marketing to maximize short-term profits
Answer: B. Long-term competitiveness comes from differentiation rather than short-term cost
cutting.
Q3.
Spending on CSR initiatives (e.g., recycling, green policies, workforce programs) in GLO-BUS
most directly enhances:
A. Image rating and stakeholder goodwill
B. Sales only in Latin America
C. Earnings per share
D. Short-term profitability
,Answer: A. CSR primarily strengthens brand image and reputation, indirectly influencing
competitiveness.
Q4.
Why is it important to track a company’s credit rating in the simulation?
A. It affects the cost of borrowing and signals financial stability
B. It immediately increases global demand
C. It reduces advertising expenses
D. It has no bearing on company outcomes
Answer: A. Higher credit ratings lower interest costs and boost investor confidence.
Q5.
Before expanding production facilities in GLO-BUS, the most critical factor to evaluate is:
A. Projected demand trends in each global region
B. Current company stock performance
C. CSR spending levels
D. Competitor advertising activity
Answer: A. Expanding capacity without demand growth risks costly overcapacity.
Q6.
Why can focusing too much on market share harm performance in GLO-BUS?
A. Market share isn’t considered in the game results
B. It often requires steep price cuts that lower EPS and stock price
C. Companies are penalized for gaining high market share
D. It automatically reduces credit ratings
Answer: B. Market share growth at the expense of profitability undermines shareholder
returns.
Q7.
Which decision has the strongest direct impact on a company’s image rating?
A. Reducing long-term debt
B. Investments in CSR, celebrity endorsements, and product quality improvements
C. Reducing base wages
, D. Adjusting hedging against currency risks
Answer: B. Image rating is primarily shaped by quality, endorsements, and CSR efforts.
Q8.
A company pursuing a low-cost leadership strategy in GLO-BUS should prioritize:
A. Achieving economies of scale and reducing SG&A expenses
B. Heavy spending on celebrity endorsements and premium materials
C. Keeping capacity deliberately low to minimize risk
D. Emphasizing CSR over operational efficiency
Answer: A. Efficiency and scale are key drivers of a successful cost-leadership strategy.
Q9.
Which performance measure best reflects investor expectations in the simulation?
A. Return on Equity (ROE)
B. Market share in each region
C. Brand advertising spend
D. Labor productivity rates
Answer: A. ROE demonstrates how effectively investor funds generate returns.
Q10.
Exchange rate fluctuations in GLO-BUS mainly influence:
A. Profit margins and regional cost advantages
B. Employee satisfaction
C. Endorsement contracts
D. Advertising allocations
Answer: A. Currency shifts alter production costs and regional profitability.
Q11.
Why must managers balance short-term EPS with long-term investments in GLO-BUS?
A. The simulation penalizes short-term success
B. Focusing only on EPS may sacrifice R&D, CSR, or branding, reducing long-term
competitiveness
C. EPS has little relevance for investors
