Glo-Bus Participant's Guide Exam
Questions and Complete Solutions
Graded A+
Which of the following does NOT accurately describe your company's camera/drone business and
operations?
The company has two buildings for assembling products at its Taiwan site - one for cameras and one for
drones (the drone assembly process also includes assembly of an action camera model having features
and specifications suitable for use in camera-equipped drones). No camera models or drone models are
assembled in advance, warehoused in company facilities and then used to fill incoming orders.
Your company maintains regional facilities in Milan, Italy; Singapore; Sao Paulo, Brazil; and Dallas, Texas
to handle the company's marketing efforts in each of the world's principal geographic regions, to
support the merchandising efforts of area retailers who stock the company's brand of action-capture
cameras and UAV drones, and to process camera/drone warranty claims including making needed
repairs) originating in their - Answer: The company makes the majority of the needed camera
components at facilities close to its Taiwan assembly plant; newly-produced camera components are
transferred by truck on a just-in-time basis to the company's camera assembly facilities where the
company operates a 250-person assembly line capable of turning out 3,250 cameras per hour. There is
ample space at the camera assembly facility to add two more 250-person assembly lines should they be
needed later to fill incoming buyer orders.
Worldwide unit sales of wearable, miniature action-capture cameras are reliably projected to grow:
A. 6-8% annually for Years 6-10 and then to grow at a slower 4-6% annual rate during the Years 11-15.
B. At rates that can range from as little as 5% annually to as high as 15% annually
C. About 10% annually through Year 15
D. To grow 8-10% annually during Years 6-10 and then to grow at a slower 6-8% annual rate during the
following five years (Years 11-15)
10% annually for Years 6-10, and then slow gradually to 5% annually during Years 11-15. - Answer: A. 6-
8% annually for Years 6-10 and then to grow at a slower 4-6% annual rate during the Years 11-15.
Which of the following is NOT one of the benefits of current-year and cumulative expenditures for
camera/drone product R&D?
, A. Reducing total annual compensation costs for PATs because such spending, once it reaches $25
million annually and a cumulative total of $100 million, allows the size of PATs to be reduced from 4
persons to 2 persons
B. Increasing the productivity of PATs in assembling camera/drone models (because of easier to
assemble product designs); the size of this benefit occurs immediately and varies according to the
current and cumulative amounts spent
C. Boosting a company's P/Q ratings (the size of this benefit varies with the current and cumulative
amounts spent and shows up in the P/Q ratings at the beginning of the following year)
D. Reducing warranty claims and costs (these two benefits show at the beginning of the following year)
Providing a pipeline of tested ways to add more features, improve - Answer: A. Reducing total annual
compensation costs for PATs because such spending, once it reaches $25 million annually and a
cumulative total of $100 million, allows the size of PATs to be reduced from 4 persons to 2 persons
Which one of the following is NOT a factor in determining a company's action camera sales and market
share in a particular geographic region?
How a company's average wholesale price for the camera models it sells to retailers in the region
compares with the average wholesale prices of the camera models of competing companies
The number of camera models in each company's line-up of camera offerings, the length of the warranty
period for each company's camera models, and the amount companies spend for advertising
The amounts by which the company's credit rating and customer service rating are above/below the
regional average
Whether the size of the discounts off the regular average wholesale price a company offers to retailers
during weekly sales promotion campaigns is above/below the regional average
The extent to which the number of week-long camera sales promotions a company has annually is
above/below the region' - Answer: The amounts by which the company's credit rating and customer
service rating are above/below the regional average
Which of the following statements does NOT accurately describe how your company's performance is
scored on the Best-In-Industry Standard?
In order to receive a score of 100, a company must 1) be the best-in-industry performer on EPS, ROE,
stock price, and image rating, 2) achieve the investor-expected targets for EPS, ROE, stock price
appreciation, and image rating set by the company's Board of Directors, and 3) have an A+ credit rating.
Your company will receive an annual best-in-industry score and a best-in-industry score for all years
completed
Questions and Complete Solutions
Graded A+
Which of the following does NOT accurately describe your company's camera/drone business and
operations?
The company has two buildings for assembling products at its Taiwan site - one for cameras and one for
drones (the drone assembly process also includes assembly of an action camera model having features
and specifications suitable for use in camera-equipped drones). No camera models or drone models are
assembled in advance, warehoused in company facilities and then used to fill incoming orders.
Your company maintains regional facilities in Milan, Italy; Singapore; Sao Paulo, Brazil; and Dallas, Texas
to handle the company's marketing efforts in each of the world's principal geographic regions, to
support the merchandising efforts of area retailers who stock the company's brand of action-capture
cameras and UAV drones, and to process camera/drone warranty claims including making needed
repairs) originating in their - Answer: The company makes the majority of the needed camera
components at facilities close to its Taiwan assembly plant; newly-produced camera components are
transferred by truck on a just-in-time basis to the company's camera assembly facilities where the
company operates a 250-person assembly line capable of turning out 3,250 cameras per hour. There is
ample space at the camera assembly facility to add two more 250-person assembly lines should they be
needed later to fill incoming buyer orders.
Worldwide unit sales of wearable, miniature action-capture cameras are reliably projected to grow:
A. 6-8% annually for Years 6-10 and then to grow at a slower 4-6% annual rate during the Years 11-15.
B. At rates that can range from as little as 5% annually to as high as 15% annually
C. About 10% annually through Year 15
D. To grow 8-10% annually during Years 6-10 and then to grow at a slower 6-8% annual rate during the
following five years (Years 11-15)
10% annually for Years 6-10, and then slow gradually to 5% annually during Years 11-15. - Answer: A. 6-
8% annually for Years 6-10 and then to grow at a slower 4-6% annual rate during the Years 11-15.
Which of the following is NOT one of the benefits of current-year and cumulative expenditures for
camera/drone product R&D?
, A. Reducing total annual compensation costs for PATs because such spending, once it reaches $25
million annually and a cumulative total of $100 million, allows the size of PATs to be reduced from 4
persons to 2 persons
B. Increasing the productivity of PATs in assembling camera/drone models (because of easier to
assemble product designs); the size of this benefit occurs immediately and varies according to the
current and cumulative amounts spent
C. Boosting a company's P/Q ratings (the size of this benefit varies with the current and cumulative
amounts spent and shows up in the P/Q ratings at the beginning of the following year)
D. Reducing warranty claims and costs (these two benefits show at the beginning of the following year)
Providing a pipeline of tested ways to add more features, improve - Answer: A. Reducing total annual
compensation costs for PATs because such spending, once it reaches $25 million annually and a
cumulative total of $100 million, allows the size of PATs to be reduced from 4 persons to 2 persons
Which one of the following is NOT a factor in determining a company's action camera sales and market
share in a particular geographic region?
How a company's average wholesale price for the camera models it sells to retailers in the region
compares with the average wholesale prices of the camera models of competing companies
The number of camera models in each company's line-up of camera offerings, the length of the warranty
period for each company's camera models, and the amount companies spend for advertising
The amounts by which the company's credit rating and customer service rating are above/below the
regional average
Whether the size of the discounts off the regular average wholesale price a company offers to retailers
during weekly sales promotion campaigns is above/below the regional average
The extent to which the number of week-long camera sales promotions a company has annually is
above/below the region' - Answer: The amounts by which the company's credit rating and customer
service rating are above/below the regional average
Which of the following statements does NOT accurately describe how your company's performance is
scored on the Best-In-Industry Standard?
In order to receive a score of 100, a company must 1) be the best-in-industry performer on EPS, ROE,
stock price, and image rating, 2) achieve the investor-expected targets for EPS, ROE, stock price
appreciation, and image rating set by the company's Board of Directors, and 3) have an A+ credit rating.
Your company will receive an annual best-in-industry score and a best-in-industry score for all years
completed
