CAPSTONE ACTUAL LATEST EXAM 2024/2025 WITH
DETAILED QUESTIONS AND VERIFIED CORRECT
ANSWERS/ ALREADY GRADED A++
Research and development - ANSWER Products are invented and revised
by which department?
Marketing
Production
Research and Development
Finance
capstone courier - ANSWER What is the industry newsletter called?
Capstone Courier
Capstone Quarterly
Capstone Messenger
wage increases - ANSWER Which of these investments is not a function of
the Production department?
Increasing Automation
Wage Increases
Creating new production lines
a b and c - ANSWER What are your company's options for raising money?
Borrowing Long-term debt
Borrowing Short-term debt
Issuing Stock
A and C only
A, B and C
marketing - ANSWER Prices are established by the:
Finance Department
Marketing Department
Production Department
R&D Department
true - ANSWER The Proformas are dynamic financial statements that
recalculate based on your decisions.
True
,False
performance, low end, high end, size, traditional - ANSWER 5 different
markets
match product to market, rank best product - ANSWER two step purchase
decision
traditional - ANSWER age - price - position - quality
low end - ANSWER price - age - position - quality
high end - ANSWER position - age - quality - price
performance - ANSWER quality - position - price - age
size - ANSWER position - age - quality - price
marketing, finance, product, research and development - ANSWER 4
functional areas
R and D cycle time factors - ANSWER - automation level of production line
- number of projects underway
- distance moved
New product development - ANSWER - takes at least one year
- max is 2x listed capacity
- additional capacity takes at least one year
-create 25% awareness at no cost
require capacity and automation
over forecasting, failed to raise funds needed for expenditures - ANSWER
Emergency loan factors
overall cost leader, differentiation - ANSWER competition strategies
customer survey score - ANSWER calculated 12x/year
-age and positioning taken into account
-100 - ideal spot, bottom priced, ideal age, MTBF top
,awareness - ANSWER 1/3 forget from year to year
-built over time by products promotion budget
-fund advertising and public relations campaign
accessibility - ANSWER built over time by products sales budget
-fund salespeople and distribution systems to service customers
raising automation risks - ANSWER 1) expensive - $4 per unit
2) as you raise, increasingly difficult for R and D to reposition products
short distances
current debt, stock issues, profits, long term debt - ANSWER 4 different
ways to acquire capital
acquire capital, dividend policy, AP/AR policy, debt to equity structure,
performance measures - ANSWER 5 decisions that come with financing
statement of cash flows, balance sheet, Income statement - ANSWER 3
financial statements
poor investing and financing decisions, negative cash flows result in
emergency loan - ANSWER reasons for having bad cash flows.
When a segment's product supply exceeds demand, how much appeal, to
the customer, will a product priced $1 above or below the segment price
range lose? - ANSWER 20%
Which one of the following is NOT one of the four product characteristics
that R & D can set? - ANSWER quality
Assuming no additional product promotion, what percent of customers,
reached through last year's marketing campaign will carry over into the
current year? - ANSWER 67%
Which of the following are not considered in the Fine Cut? - ANSWER
automation
If your company has a sales budget of $3 million and drops it to zero, in
that year - ANSWER accessibility will drop by one third
, At the beginning of the simulation, how many assembly lines are there? -
ANSWER five lines per company
If your short-term interest rate (the rate on your current debt is 12.1%, then
your bond rate (the rate on your long-term debt) is: - ANSWER 1.4% higher
than the current debt rate, or 13.5%
The promotion budget affects: - ANSWER awareness
Last year your company built 1,500,000 units of product Able and sold
1,405,000 After 14 months in R&D, a revision of product Able is due out
tomorrow, on January 2 (the first business day of this year) What will
happen to the unsold inventory of 95,000 units of - ANSWER they'll be
reworked to match the new specifications for product Able
Based on the example in the Team Member Guide, what additional
awareness does a promotion budget of $1,500,000 buy? - ANSWER 36%
What is the minimum amount of time that it takes to invent a new sensor? -
ANSWER 1 year
What's the measure for product reliability? - ANSWER How long a product
is expected to function
If you purchase production capacity and automation: - ANSWER it is
available in the next year
Which financial obligation is best satisfied with Bond Issues? - ANSWER
Paying for increased production capacity
How much do segment prices fall each year? - ANSWER Segment price
changes vary depending upon relative market demand
The relationship between promotion and sales budget and sensor sales is
generally - ANSWER a direct one.
A firm's bond rating slips by 1 category for each ______ in interest -
ANSWER additional 0.5%
DETAILED QUESTIONS AND VERIFIED CORRECT
ANSWERS/ ALREADY GRADED A++
Research and development - ANSWER Products are invented and revised
by which department?
Marketing
Production
Research and Development
Finance
capstone courier - ANSWER What is the industry newsletter called?
Capstone Courier
Capstone Quarterly
Capstone Messenger
wage increases - ANSWER Which of these investments is not a function of
the Production department?
Increasing Automation
Wage Increases
Creating new production lines
a b and c - ANSWER What are your company's options for raising money?
Borrowing Long-term debt
Borrowing Short-term debt
Issuing Stock
A and C only
A, B and C
marketing - ANSWER Prices are established by the:
Finance Department
Marketing Department
Production Department
R&D Department
true - ANSWER The Proformas are dynamic financial statements that
recalculate based on your decisions.
True
,False
performance, low end, high end, size, traditional - ANSWER 5 different
markets
match product to market, rank best product - ANSWER two step purchase
decision
traditional - ANSWER age - price - position - quality
low end - ANSWER price - age - position - quality
high end - ANSWER position - age - quality - price
performance - ANSWER quality - position - price - age
size - ANSWER position - age - quality - price
marketing, finance, product, research and development - ANSWER 4
functional areas
R and D cycle time factors - ANSWER - automation level of production line
- number of projects underway
- distance moved
New product development - ANSWER - takes at least one year
- max is 2x listed capacity
- additional capacity takes at least one year
-create 25% awareness at no cost
require capacity and automation
over forecasting, failed to raise funds needed for expenditures - ANSWER
Emergency loan factors
overall cost leader, differentiation - ANSWER competition strategies
customer survey score - ANSWER calculated 12x/year
-age and positioning taken into account
-100 - ideal spot, bottom priced, ideal age, MTBF top
,awareness - ANSWER 1/3 forget from year to year
-built over time by products promotion budget
-fund advertising and public relations campaign
accessibility - ANSWER built over time by products sales budget
-fund salespeople and distribution systems to service customers
raising automation risks - ANSWER 1) expensive - $4 per unit
2) as you raise, increasingly difficult for R and D to reposition products
short distances
current debt, stock issues, profits, long term debt - ANSWER 4 different
ways to acquire capital
acquire capital, dividend policy, AP/AR policy, debt to equity structure,
performance measures - ANSWER 5 decisions that come with financing
statement of cash flows, balance sheet, Income statement - ANSWER 3
financial statements
poor investing and financing decisions, negative cash flows result in
emergency loan - ANSWER reasons for having bad cash flows.
When a segment's product supply exceeds demand, how much appeal, to
the customer, will a product priced $1 above or below the segment price
range lose? - ANSWER 20%
Which one of the following is NOT one of the four product characteristics
that R & D can set? - ANSWER quality
Assuming no additional product promotion, what percent of customers,
reached through last year's marketing campaign will carry over into the
current year? - ANSWER 67%
Which of the following are not considered in the Fine Cut? - ANSWER
automation
If your company has a sales budget of $3 million and drops it to zero, in
that year - ANSWER accessibility will drop by one third
, At the beginning of the simulation, how many assembly lines are there? -
ANSWER five lines per company
If your short-term interest rate (the rate on your current debt is 12.1%, then
your bond rate (the rate on your long-term debt) is: - ANSWER 1.4% higher
than the current debt rate, or 13.5%
The promotion budget affects: - ANSWER awareness
Last year your company built 1,500,000 units of product Able and sold
1,405,000 After 14 months in R&D, a revision of product Able is due out
tomorrow, on January 2 (the first business day of this year) What will
happen to the unsold inventory of 95,000 units of - ANSWER they'll be
reworked to match the new specifications for product Able
Based on the example in the Team Member Guide, what additional
awareness does a promotion budget of $1,500,000 buy? - ANSWER 36%
What is the minimum amount of time that it takes to invent a new sensor? -
ANSWER 1 year
What's the measure for product reliability? - ANSWER How long a product
is expected to function
If you purchase production capacity and automation: - ANSWER it is
available in the next year
Which financial obligation is best satisfied with Bond Issues? - ANSWER
Paying for increased production capacity
How much do segment prices fall each year? - ANSWER Segment price
changes vary depending upon relative market demand
The relationship between promotion and sales budget and sensor sales is
generally - ANSWER a direct one.
A firm's bond rating slips by 1 category for each ______ in interest -
ANSWER additional 0.5%
