QUESTIONS & ANSWERS(RATED
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 - ANSWERThe 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.
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' - ANSWERThe amounts by which the
company's credit rating and customer service rating are above/below the regional
average
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. - ANSWERA. 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 - ANSWERA.
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 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
If ROE is given a weight of 20 pts by the instructor, a company with an industry-
leading ROE performance of 30% that happens to be 5 percentage pts above the
investor-expected ROE of 25% earns a score of 20 pts plus a 5pt bonus for
achieving an ROE that is 5 percentage pts above the investor-expected ROE.
The best-in-industry performer on EPS, on ROE, on Image Rating, and - ANSWERIf
ROE is given a weight of 20 pts by the instructor, a company with an industry-leading
ROE performance of 30% that happens to be 5 percentage pts above the investor-
expected ROE of 25% earns a score of 20 pts plus a 5pt bonus for achieving an
ROE that is 5 percentage pts above the investor-expected ROE.
The company has its camera and drone assembly facilities in:
Shanghai, China
Singapore