ACTUAL Exam Questions and CORRECT
Answers
Which of the following is NOT one of the benefits of current year and cumulative expenditures
for camera/drone product R&D? - CORRECT ANSWER - Reducing total annual
compensation costs for PAT's because such spending once it reaches $25 million annually and a
cumulative total of $100 million, allows the size of PAT's to be reduced from 4 persons to 2
persons
Boosting a company's P/Q rating (the size of this benefit varies with the current and cumulative
amounts spent and show up in the P/Q rating's at the beginning of the following year.
Which of the following are the four geographic regions in which the company is currently selling
its action cameras and UAV drones? - CORRECT ANSWER - Europe-Africa, Latin
America, Asia Pacific, and North America
The company has its camera and drone assembly facilities ? - CORRECT ANSWER -
Taiwan
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? - CORRECT 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 about your company's assembly operations for cameras and
drones is FALSE? - CORRECT ANSWER - Cameras and drones are both assembled by 4-
person PATs, however installation of robotic upgrades to camera drone workstations permits the
size of PAT's to be cut to 3 person
Which of the following is NOT accurate as concerns the online retailers of unmanned aerial view
drones and or the buyers of unmanned aerial view drones? - CORRECT ANSWER -
, Potential buyers pay little attention to the search engine advertising they encounter when
browsing for information about UAV drones, and their decisions ultimately purchase this or that
brand are unaffected by these ads.
When two brands of drones have slightly different prices and P/Q ratings (and all other buyer
considerations are on balance, an even trade-off between the two brands ) then a bigger
percentage of buyers in North America and Europe-Africa (as compared to the Asia Pacific and
Latin America Regions will disregard which brand has the higher P/Q rating and purchase the
lower price brand
Which of the following statements about crafting a strategy to be competitively successful in the
markets for action cameras and drones IS true? - CORRECT ANSWER - Very often the
most appealing competitive approach a company can employ is a "more value for the money"
strategy (for example: selling 8-star cameras and drones at lower prices than other 8-star brands)
where your competitive advantage is an ability to incorporate "upscale" product attributes with
high buyer appeal at lower costs than rivals and thereby underprice rival brands of cameras and
drones having comparable attributes and P/Q ratings
Which of the following statements does NOT accurately describe how your company's
performance is scored on the Best-in Industry standard? - CORRECT ANSWER - If EPS
gives an instructor-assigned weight of 20 points, a company with an industry leading EPS
performance of $5.00 (that is above investor -expected EPS of $3.70) gets a score of 20 points
and a company with EPS of $3.00 (Which is 60% as good as they leader's of $5.00) gets a score
of 12 points (60% of 20 points)
If image Rating is given a weight of 20 points by your instructor, a company with an industry-
leading Image Rating of 80 (10 points above the investor expected rating of at least 70) earns a
score of 20 points.
If ROE is given a weight of 20 points by your instructor a company with an industry-leading
ROE performance of 30% that happens to be 5% points above the investor expected ROE at 25%
earns a score of 20 points plus 5 point bonus for achieving an ROE that is five percentage points
above the investor expected ROE