Comp XM 3 Questions and Answers Rated A

Comp XM 3 Questions and Answers Rated A The Digby's workforce complement will grow by 10% (rounded to the nearest person) automating, what would their total recruiting cost be? Assume Digby spends the same amount extra above the $1,000 next year. Ignoring downsizing from recruiting base as they did last year. a) $312,000 b) $2,840,000 c) $260,000 d) $3,408,000 Company Baldwin invested $30,800,000 in plant and equipment last year. The plant investment was funded with bonds at a face value of $19,109,969 at 12.1% interest, and equity of $11,690,031. Depreciation is 15 years straight line. For this transaction alone which of the following statements are true? a) Depreciation increased by $2,053,333. b) Cash went up when the Bond was issued by $19,109,969. c) Buying the plant had no net effect on the Cash account, because the plant was paid for by the bond plus retained earnings. d) Cash was pulled from retained earnings to cover the $11,690,031 difference between the plant purchase and bond issue. e) On the Balance sheet, Plant & Equipment increased by $30,800,000. f) Since the new plant was funded with debt and equity, on the Balance sheet Retained Earnings decreased by $11,690,031, the difference between the investment $30,800,000 and the bond $19,109.969. g) Cash went down by $30,800,000 when the plant was purchased. h) On the Balance sheet, Long Term Debt changed by $19,109,969. Your team is struggling with the quality of discussions during team meetings. Much of the difficulty stems from how conversation flows among team members. Which of the following actions would be most likely to enhance the overall quality of your team's discussions? a) Encourage team members to build upon comments and questions that others have already voiced. b) Before each meeting, create a sequence that indicates when each person should speak. c) Organize team discussions by allowing team members with more project experience speak first. d) Create more flexibility by allowing team members with more to say determine the direction of the discussions. This year Andrews achieved an ROE of 24.6%. Suppose management takes measures that decrease Asset turnover (Sales/Total ASsets) next year. Assuming Sales, Profits, and financial leverage remain the same, what effect would you expect this action to have on Andrews's ROE? a) Andrews ROE will increase b) Andrews ROE will remain the same c) Andrews ROE will decrease It is January 2nd and senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterday's stock price ($36.97) and leverage changes to 2.7. Which of the following statements are true? a) Working capital will remain the same at $15,570,093 b) Digby will issue stock totaling $2,772,750 c) Equity will be $84,060,609 d) Total liabilities will be $121,856,406 e) Total Assets will rise to $219,477,219 f) The total investment for Digby will be $208,689,765 Next year Baldwin plans to include an additional performance bonus of 0.25% in its compensation plan. This incentive will be provided in addition to the annual raise, if productivity goals are reached. ASsuming the goals are reached, how much will Baldwin pay its employees per hour? a) $28.15 b) $28.22 c) $29.63 d) $31.04 Suppose the Chester company begins to compete through good designs, high awareness and easy accessibility for their existing products, what strategy would they be implementing? a) Niche cost leader b) Broad differentiation c) Broad cost leader c) Niche differentiation There is no one more technically savvy than James Westover. Indeed, he has built two amazing cloud-based applications and started his own application development company, all within two years of graduating from college. Because of his success, James caught the attention of Cheryl Stevens, a venture capitalist who funds technology start-ups. Cheryl asked James to send her his best idea for a new application remarking, "if it's anything like your previous two, you can count me in." James is technical nature of his idea. Which of the following worried about sending the idea without being able to clarify the very actions would you recommend James do at this stage in order to be MOST effective in communicating with Cheryl? a) Tell Cheryl that this type of information is very technical and ask if she has a technical advisory team that could help her. b) Provide Cheryl with a brief proposal describing the idea in non-technical terms and ask for a face-to-face follow up meeting. c) Thank Cheryl and politely tell her that the information is too technical to be described in a proposal and ask for a face- to-face meeting. d) Send Cheryl a PowerPoint slide deck with the information she requested and ask for her feedback. Mike is the Director of Human Resources for a 120-employee family-owned manufacturing firm. Mike has been quite busy the last year reforming the benefit offerings to comply with recent changes in healthcare laws. Given the many changes, Mike took the opportunity to completely overhaul the employee benefits program including replacing the old medical plans with three brand-new plans. Mike is preparing to tell employees about their new benefit offerings a few months prior to the benefits open-enrollment period. Given the number of employees, he decides to design a nicely formatted PowerPoint slide deck explaining the changes and to send this presentation via email to all employees. One day into the open-enrollment period, his inbox is flooded with over 50 emails from confused employees. Mike is puzzled, but realizes he may have made a mistake in communication. Which of the following BEST describes the primary communication mistake he made? a) Assuming that employees would understand the content of the PowerPoint slides. b) Forgetting to alert managers that the communication was "coming their way." c) Failing to match the communication medium (or channel) with the intended outcome. d) Failing to develop core ideas that adhere to the rules of "sticky" communication. You are preparing for a 3-month global assignment in Turkey working on an international quality improvement team for your company's manufacturing division. After buying a few travel books and researching some of Turkey's contemporary history, you are quickly overwhelmed by the sheer amount of information to learn. Which of the following types of cultural information would be MOST CRITICAL to understand before arriving in Turkey for your assignment? a) Basic tax and compensation laws in Turkey b) Geopolitical views of your own (native) country. c) Dominant religious beliefs in Turkey. d) Rules for Turkish interpersonal communication. You have realized that a report your team authored and which is now sitting on the desk of the CEO, contains several significant erors. What is the most effective way to deal with this situation? a) As a team, prioritize the errors and fix the report. b) As a team, figure out who was responsible for the errors so that they can be fixed. c) Develop an initial plan for how to fix the report. d) Wait for the CEO to inform the team that the errors are important to fix. You have just accepted a leadership position of a newly formed project team. The team is geographically dispersed with team members from Europe, North America, and South America. Although the team will have quarterly face-to-face meetings at the company's headquarters, most of the team's work is conducted virtually (online). As the leader of this new team, you want to ensure that team members from different cultural backgrounds work effectively and efficiently together. Which of the following actions would be most effective in facilitating your team's performance? a) Have each team member learn something about another team member's home country. b) Have regular "check-ins" with the team where everyone discusses how things are going. c) Tell the team that you are available for advice or help whenever anyone needs it. d) Discuss expectations for team member communication and processes for making decisions. You are hiring for a new group of sales reps for next year in anticipation of an increase in business. Charles, a minority candidate, is your top pick as his performance in the sales training program far exceeded any other sales rep. You're set to hire him into your largest and most profitable territory. Your boss, however, has expressed concerns that his minority status might be a problem in your mainly White territory. Today your boss sent you an email that read in part "I think it's in Charles' best interest if we find him a territory that is better suited to his background." Which stakeholders are you primarily obligated to consider in making this decision? a) Territory customers and your boss b) Territory customers, your boss, and you c) Charles, you, and your boss d) Charles, your territory customers, and your boss Your boss confides in you that one of your highly successful coworkers has been "padding" his expense account by billing for personal items. This action violates a company policy, which notes that termination is a possible consequence of such action. "Should I fire him or just ask him to pay back the money?" Which of the following He asks you for your opinion, saying, responses would be most effective in helping your boss make an ethical decision? a) "People make mistakes sometimes and deserve to be heard." b) "There may be additional actions beyond the ones you've presented." c) "Most people pad a little; consider it a bonus for his good performance" d) "It doesn't appear that any harm was done to individuals, he should pay back the money" On the Income Statement, which of the following would be classified as a variable cost? a) Depreciation Expense b) Direct Labor Expense c) R&D Expense d) Promotion Expense Baldwin Corp. ended the year carrying $22,791,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Baldwin Corp.? a) $35,937,000 b) $22,791,000 c) $47,796,210 d) $12,379,000