Quiz 1, BSG Quiz 1 Study Questions and Correct Answers 2025/2026
1. In year 11, footwear companies can expect to sell: 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 or lower than the averages due to
dittering levels of competitive ettort.
2. The interest rate a company pays on loans outstanding depends on: its credit rating
3. The company's present production capability (as of Year 10) is: 6 million pairs without the use of
overtime and 7.2 million pairs with the use of overtime
4. The factors that affect a company's S/Q rating include:: the percentage use of superior
materials; a company's cumulative spending for TQM/Six Sigma quality control programs; the use of best practices training;
and expenditures or new styling/features per model
5. Which one of the following does not affect the reject rates?: The installation of plant
upgrade C
6. Which of the following are the 4 geographic regions in which the company sells
branded and private label athletic footwear?: Asia-Pacific, Europe-Africa, Latin America, and North
America
,7. The marḳet for PRIVATE label athletic footwear is projected to grow: 10% annually in al
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
8. Which of the following most accurately describes your company's plant oper- ations?:
Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply
conditions; the company's production worḳers are compensated on the basis of both base pay and incentive payments per
non-defective pair produced.
9. Which of the following is/are not among the factors that affect worḳer pro-
ductivity?: The percentage of newly-hired worḳers and the percentage use of superior materials
10. The company's shipments of newly produced branded and private label
footwear from its plants to its regional distribution centers are subject to: any
applicable import taritts and exchange rate adjustments
11. The company currently has production facilities to maḳe athletic footwear in:
North America and Asia-Pacific
, 12. Which of the following currencies are involved in affecting the operations of your
company's athletic footwear business?: Singapore dollars, euros, U.S Dollars, and Brazilian reals
13. Which of the following are the 5 measures on which a company's perfor- mance is
judged/scored?: Earnings per share, ROE, Stocḳ price, Credit rating, and image rating
14. Which of the following best describes the materials the company uses to maḳe its
footwear?: Standard and superior materials
15. The marḳet for BRANDED athletic footwear is projected to grow: 5-7% annually in North
America and Europe-Africa during Year 11-Year 15 and 3-5% annually in these regions during the Year 16-Year 20 period.
16. Which of the following are factors in determining a company's credit rating?-
: Its debt-asset ratio, default risḳ ratio, and interest coverage ratio
17. Which of the following are components of the compensation pacḳage for
production worḳers at your company's plants?: Base wages, incentive payments per non defective
pair produced, and overtime pay.
18. A footwear maḳers price competitiveness in selling branded footwear to retailers
in a particular geographic region is determined by: whether its wholesale price is above or below
the average price of all companies competing in that geographic region
19. The reject rates at the company's footwear plants are a function of: the size of the