BSG COMPREHENSIVE FINAL EXAM
NEWEST ACTUAL EXAM
PREPARATION WITH COMPLETE
QUESTIONS AND CORRECT
ANSWERS WITH RATIONALES |
ALREADY GRADED A+||BRAND NEW
VERSION!!
The installation of production improvement option D which boosts
worker productivity by 50% by using robots to assist in producing
footwear
----Solution----
is a more economically attractive means for reducing labor costs per pair
produced production facility in North America than for a production
facility in the Asia Pacific
Which one of the following actions is least likely to increase labor
productivity by an amount that is large enough to result in lower labor
costs per pair produced at a particular plant?
----Solution----
Increasing worker base pay by the allowed maximum of 15% each and
every year until the company's base pay compensation per employee
exceeds the total compensation per employee ($/year) of all other
companies in the industry
Which one of the following options is usually an appealing way to try to
increase a company's ROE?
,2|Page
----Solution----
Repurchasing share4s of common stock
Which one of the following has little bearing on whether profitable
opportunity exists to install additional new or refurbished production
equipment in the upcoming decision round?
----Solution----
How many companies in the industry have expanded their production
capacity since Year 10
Which one of the following is a way to improve the S/Q rating of
branded pairs produced at a particular production facility?
----Solution----
Increasing per model expenditures for enhanced styling/features
If a company's actual results for revenues , net profits, EPS, and ROE
turn out to be worse than projected, then it is usually because
----Solution----
the competitive efforts exerted by rival companies to capture sales and
market share for themselves in one or more geographic regions proved
stronger than company managers anticipated, given the updates of the
regional average competitive efforts that company managers made in the
A company cannot effectively differentiate its branded footwear from
the brands of rivals and thereby attract more buyers by
----Solution----
,3|Page
refraining from bidding on contracts to supply private label footwear to
chain retailers
The most competitively effective and very likely most profitable long-
term approach to reducing or eliminating the impact of paying tariffs on
pairs imported to a company's distribution warehouse in Europe-Africa
is to
----Solution----
build and equip a production facility in Europe-Africa and then expand it
as may be needed to supply all (or at least most) of the pairs the
company intends to try to sell in the Europe-Africa region
Production improvement option B (with capital costs of $1.6 million per
million pairs of production capacity and annual depreciation costs of
10%) that reduces production run setup costs by 50% each year makes
the most economic sense in which one of the following circumstances?
----Solution----
Company managers expect to produce 350 models/styles and 6 million
pairs of branded footwear on an ongoing basis at a 6-million pair
capacity facility in the Asia-Pacific-annual production run setup costs
for 350 models of branded footwear are $9 million
Which one of the following has a direct negative impact on a company's
image rating
----Solution----
decreases in the company's global average S/Q rating for branded
footwear
, 4|Page
Which of the following actions is not one of the optional initiatives that
a company can include in its social responsibility strategy to boost its
image rating over the long term?
----Solution----
using enviromentally friendly or green materials in producing athletic
footwear
Which sets of actions are unlikely to help a company achieve a
differentiation based competitive advantage over some/many of its
rivals?
----Solution----
Raising worker base pay by 10% or more each year
One of the lessons about competing in a globally competitive
marketplace that comes from playing the BSG game?
----Solution----
competition is dynamic and always evolve
company's management team to abandon efforts to win contracts to
supply private label footwear to chain retailers
----Solution----
it believes the company has a good prospects to profitability sell all of
the branded pairs it can produce