QUESTIONS WITH CORRECT ANSWERS 2023
"The reject rates at the company's footwear plants are a function of - Correct Answer the size of the
incentive payment per non defective pair produced, spending for best practices training, spending for
TQM/Six Sigma quality control efforts, the number of models/styles comprising the company's product
line, and the installation of plant upgrade option A"
"The company's present production capability (as of Year 10) is - Correct Answer 6 million pairs
without the use of overtime and 7.2 million pairs with the use of overtime"
"Which one of the following is not a factor in determining a company's unit sales and market share of
branded footwear in a particular geographic region? - Correct Answer The number of new
performance features built into each year's models/styles"
"Which of the following is the most important factor in determining a company's unit sales and market
share of private-label footwear in a particular geographic region? - Correct Answer The company's bid
price"
"The factors that affect a company's S/Q rating include: - Correct Answer the percentage use of
superior materials; a company's cumulative spending for TQM/Six Sigma quality control programs; the
use of best practices training; and expenditures or new styling/features per model"
"Which one of the following does not affect the reject rates? - Correct Answer The installation of plant
upgrade C"
"Which of the following are the 4 geographic regions in which the company sells branded and private
label athletic footwear? - Correct Answer Asia-Pacific, Europe-Africa, Latin America, and North
America"
"The market for PRIVATE label athletic footwear is projected to grow - Correct Answer 10% annually in
all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during
the Year 16-Year 20 period"
"Which of the following most accurately describes your company's plant operations? - Correct Answer
Standard and superior materials are sourced from outside suppliers at prices that vary according to
global demand-supply conditions; the company's production workers are compensated on the basis of
both base pay and incentive payments per non-defective pair produced."
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, "The market for branded athletic footwear is projected to grow - Correct Answer 9-11% annually in
Latin America and the Asia-Pacific during the year 11-year 15 period and 7-9% annually in these regions
during the year 16-year 20 period"
"The company's shipments of newly-produced branded and private-label footwear from its plants to its
regional distribution centers are subject to - Correct Answer Any applicable import tariffs and
exchange rate adjustments"
"Which of the following is/are not among the factors that affect worker productivity? - Correct Answer
The percentage of newly-hired workers and the percentage use of superior materials"
"The company's shipments of newly produced branded and private label footwear from its plants to its
regional distribution centers are subject to - Correct Answer any applicable import tariffs and
exchange rate adjustments"
"The company currently has production facilities to make athletic footwear in - Correct Answer North
America and Asia-Pacific"
"Which of the following currencies are involved in affecting the operations of your company's athletic
footwear business? - Correct Answer Singapore dollars, euros, U.S Dollars, and Brazilian reals"
"Which of the following are the 5 measures on which a company's performance is judged/scored? -
Correct Answer Earnings per share, ROE, Stock price, Credit rating, and image rating"
"Which of the following best describes the materials the company uses to make its footwear? - Correct
Answer Standard and superior materials"
"The market for BRANDED athletic footwear is projected to grow - Correct Answer 5-7% annually in
North America and Europe-Africa during Year 11-Year 15 and 3-5% annually in these regions during the
Year 16-Year 20 period."
"Which of the following are factors in determining a company's credit rating? - Correct Answer Its
debt-asset ratio, default risk ratio, and interest coverage ratio"
"Which of the following are components of the compensation package for production workers at your
company's plants? - Correct Answer Base wages, incentive payments per non defective pair produced,
and overtime pay."
"A footwear makers price competitiveness in selling branded footwear to retailers in a particular
geographic region is determined by - Correct Answer whether its wholesale price is above or below
the average price of all companies competing in that geographic region"
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