Glo-bus Quiz 2 UPDATED ACTUAL Exam
Questions and CORRECT Answers
Which one of the following is NOT a way to improve the P/Q rating of a company's brand of
multi-featured cameras - CORRECT ANSWER - Increasing the number of models in the
company's line of multi-featured cameras.
Assume a company's Income Statement for a given quarter is as follows: Sales Revenues
(50,000), Production Costs (26,500), Delivery Costs (1,600), Marketing Costs (8,500),
Administrative Expenses (2,000), Operating Profit (14,400), Net Interest (750), Income Before
Taxes (13,650), Taxes (4,095), Net Income (9,555). Based on the above data, which of the
following statements is false? - CORRECT ANSWER - Delivery costs are 2.8% of
revenues and represent the company's smallest cost component.
One of the benefits of pursuing a strategy of social responsibility and corporate citizenship is -
CORRECT ANSWER - An enhanced image rating, provided company spending for
socially responsible activities is meaningful and is sustained over a multi-year period.
Which of the following is NOT an action company co-managers can take to boost a subpar
ROE? - CORRECT ANSWER - Issue additional shares of stock and use the proceeds to
pay down the debt outstanding on the company's line of credit.
Which one of the following actions is usually a dependable and appealing way for managers to
try to boost their company's EPS? - CORRECT ANSWER - Achieve a differentiation-
based competitive advantage over rivals in both the entry-level and multi-featured camera
segments that company managers are savvy enough to sustain; as the market demand for digital
cameras grows worldwide and the company exploits its competitive advantage to win additional
sales, the profit margins from a growing sales volume of entry-level and multi-featured digital
cameras typically results in increase in EPS.
The industry-low, industry-average, and industry-high benchmarks for camera costs and
operating profits on pp. 5-6 of each issue of the GLO-BUS Statistical Review. - CORRECT
ANSWER - Are worth careful scrutiny by the managers of all companies because when
the benchmarking data signals that a company's costs/operating profits for one or more of the
Questions and CORRECT Answers
Which one of the following is NOT a way to improve the P/Q rating of a company's brand of
multi-featured cameras - CORRECT ANSWER - Increasing the number of models in the
company's line of multi-featured cameras.
Assume a company's Income Statement for a given quarter is as follows: Sales Revenues
(50,000), Production Costs (26,500), Delivery Costs (1,600), Marketing Costs (8,500),
Administrative Expenses (2,000), Operating Profit (14,400), Net Interest (750), Income Before
Taxes (13,650), Taxes (4,095), Net Income (9,555). Based on the above data, which of the
following statements is false? - CORRECT ANSWER - Delivery costs are 2.8% of
revenues and represent the company's smallest cost component.
One of the benefits of pursuing a strategy of social responsibility and corporate citizenship is -
CORRECT ANSWER - An enhanced image rating, provided company spending for
socially responsible activities is meaningful and is sustained over a multi-year period.
Which of the following is NOT an action company co-managers can take to boost a subpar
ROE? - CORRECT ANSWER - Issue additional shares of stock and use the proceeds to
pay down the debt outstanding on the company's line of credit.
Which one of the following actions is usually a dependable and appealing way for managers to
try to boost their company's EPS? - CORRECT ANSWER - Achieve a differentiation-
based competitive advantage over rivals in both the entry-level and multi-featured camera
segments that company managers are savvy enough to sustain; as the market demand for digital
cameras grows worldwide and the company exploits its competitive advantage to win additional
sales, the profit margins from a growing sales volume of entry-level and multi-featured digital
cameras typically results in increase in EPS.
The industry-low, industry-average, and industry-high benchmarks for camera costs and
operating profits on pp. 5-6 of each issue of the GLO-BUS Statistical Review. - CORRECT
ANSWER - Are worth careful scrutiny by the managers of all companies because when
the benchmarking data signals that a company's costs/operating profits for one or more of the
