BSG ACTUAL EXAM 2 |50 COMPLETE AND GRADED
QUESTIONS AND ANSWERS 2026 LATEST UPDATED
| 100% GRADED CORRECT | 100% GUARANTEED
TO PASS | GET A+
BSG ACTUAL EXAM 2 — Complete Practice Exam
180 Questions with Detailed Explanations
Section 1: Strategy Fundamentals
Question 1
In the Business Strategy Game (BSG), which of the following is the MOST critical
factor determining a company's overall brand reputation?
A) Number of retail stores globally
B) S/Q rating of footwear produced
C) Employee salary levels
D) Corporate social responsibility score
Answer: B
Explanation: The S/Q (Styling/Quality) rating is the primary driver of brand
reputation in BSG. Higher S/Q ratings (6 stars or above) directly correlate with
stronger brand image, allowing companies to command premium prices. While
CSR and retail presence matter, the S/Q rating has the most significant weighted
impact on how consumers perceive the brand.
,Question 2
What is the maximum number of production facilities a company can operate in
the BSG simulation?
A) 2 (one domestic, one international)
B) 4 (two in North America, two in Asia-Pacific)
C) 6 (one in each geographic region)
D) Unlimited with sufficient capital
Answer: A
Explanation: Companies are limited to exactly two production facilities: one in
North America and one in Asia-Pacific. This limitation forces strategic decisions
about capacity allocation, shipping costs, and regional market servicing. You
cannot build additional plants beyond these two locations.
Question 3
Which financial metric is MOST directly improved by repurchasing shares of your
company's common stock?
A) Return on Equity (ROE)
B) Operating Profit Margin
C) Gross Profit Margin
D) Current Ratio
Answer: A
Explanation: Share repurchases reduce total shareholders' equity, which increases
Earnings Per Share (EPS) and Return on Equity (ROE) since ROE = Net Income /
Shareholders' Equity. This is a common strategy to boost ROE without improving
operational performance.
,Question 4
When entering the Internet sales channel, what is the minimum investment
required to establish a functional website?
A) $500,000
B) $1,000,000
C) $2,500,000
D) $5,000,000
Answer: B
Explanation: The BSG simulation requires a $1 million initial investment to
establish an e-commerce website for Internet sales. This covers website
development, payment processing integration, and basic marketing infrastructure.
Additional investments improve website functionality and conversion rates.
Question 5
Which decision variable has the GREATEST impact on worker productivity in your
footwear assembly plants?
A) Number of supervisors per shift
B) Weekly salary paid to workers
C) Best Practices training expenditures
D) Quality of raw materials
Answer: C
Explanation: Best Practices training expenditures directly increase worker
productivity by improving manufacturing processes and reducing waste. While
salaries affect morale, training investments have a more direct and measurable
impact on units produced per worker hour.
, Question 6
What is the consequence of setting your wholesale price significantly below the
industry average?
A) Guaranteed profit margin increase
B) Higher S/Q rating automatically
C) Potential market share gains but lower profit per unit
D) Automatic penalty from the simulation
Answer: C
Explanation: Lower wholesale prices make your products more attractive to
retailers, increasing order volume and market share. However, this comes at the
cost of reduced profit margins per pair sold. This is a classic market penetration
strategy with trade-offs.
Question 7
What is the most critical factor in determining a company's ability to win private-
label contracts in the BSG simulation?
A) Low price only
B) High S/Q rating
C) Low price + short delivery time + high S/Q rating
D) Large advertising budget
Answer: C
Explanation: Private-label buyers seek the best value – a combination of low price,
good quality (S/Q), and fast delivery (days). All three factors must be optimised to
win private-label contracts.
Question 8
In the BSG, what does "S/Q rating" stand for?
QUESTIONS AND ANSWERS 2026 LATEST UPDATED
| 100% GRADED CORRECT | 100% GUARANTEED
TO PASS | GET A+
BSG ACTUAL EXAM 2 — Complete Practice Exam
180 Questions with Detailed Explanations
Section 1: Strategy Fundamentals
Question 1
In the Business Strategy Game (BSG), which of the following is the MOST critical
factor determining a company's overall brand reputation?
A) Number of retail stores globally
B) S/Q rating of footwear produced
C) Employee salary levels
D) Corporate social responsibility score
Answer: B
Explanation: The S/Q (Styling/Quality) rating is the primary driver of brand
reputation in BSG. Higher S/Q ratings (6 stars or above) directly correlate with
stronger brand image, allowing companies to command premium prices. While
CSR and retail presence matter, the S/Q rating has the most significant weighted
impact on how consumers perceive the brand.
,Question 2
What is the maximum number of production facilities a company can operate in
the BSG simulation?
A) 2 (one domestic, one international)
B) 4 (two in North America, two in Asia-Pacific)
C) 6 (one in each geographic region)
D) Unlimited with sufficient capital
Answer: A
Explanation: Companies are limited to exactly two production facilities: one in
North America and one in Asia-Pacific. This limitation forces strategic decisions
about capacity allocation, shipping costs, and regional market servicing. You
cannot build additional plants beyond these two locations.
Question 3
Which financial metric is MOST directly improved by repurchasing shares of your
company's common stock?
A) Return on Equity (ROE)
B) Operating Profit Margin
C) Gross Profit Margin
D) Current Ratio
Answer: A
Explanation: Share repurchases reduce total shareholders' equity, which increases
Earnings Per Share (EPS) and Return on Equity (ROE) since ROE = Net Income /
Shareholders' Equity. This is a common strategy to boost ROE without improving
operational performance.
,Question 4
When entering the Internet sales channel, what is the minimum investment
required to establish a functional website?
A) $500,000
B) $1,000,000
C) $2,500,000
D) $5,000,000
Answer: B
Explanation: The BSG simulation requires a $1 million initial investment to
establish an e-commerce website for Internet sales. This covers website
development, payment processing integration, and basic marketing infrastructure.
Additional investments improve website functionality and conversion rates.
Question 5
Which decision variable has the GREATEST impact on worker productivity in your
footwear assembly plants?
A) Number of supervisors per shift
B) Weekly salary paid to workers
C) Best Practices training expenditures
D) Quality of raw materials
Answer: C
Explanation: Best Practices training expenditures directly increase worker
productivity by improving manufacturing processes and reducing waste. While
salaries affect morale, training investments have a more direct and measurable
impact on units produced per worker hour.
, Question 6
What is the consequence of setting your wholesale price significantly below the
industry average?
A) Guaranteed profit margin increase
B) Higher S/Q rating automatically
C) Potential market share gains but lower profit per unit
D) Automatic penalty from the simulation
Answer: C
Explanation: Lower wholesale prices make your products more attractive to
retailers, increasing order volume and market share. However, this comes at the
cost of reduced profit margins per pair sold. This is a classic market penetration
strategy with trade-offs.
Question 7
What is the most critical factor in determining a company's ability to win private-
label contracts in the BSG simulation?
A) Low price only
B) High S/Q rating
C) Low price + short delivery time + high S/Q rating
D) Large advertising budget
Answer: C
Explanation: Private-label buyers seek the best value – a combination of low price,
good quality (S/Q), and fast delivery (days). All three factors must be optimised to
win private-label contracts.
Question 8
In the BSG, what does "S/Q rating" stand for?
