2025 QUESTIONS AND ANSWERS.
1. Which of the following does not affect the reject rates at a company's
plants? - correct answer - The S/Q rating of pairs being produced and
the use of plant upgrade option B
2. Which of the following best describes the materials the company
uses to make its footwear? - correct answer - Standard and superior
materials
3. 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
4. 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
5. Which of the following currencies are involved in affecting the
operations of your company's athletic footwear business? - correct
answer - U.S. dollars, Singapore dollars, euros, and Brazilian reals
,6. The company currently has production facilities to make athletic footwear in
- correct answer - Asia-Pacific and North America
7. Which of the following is not an accurate characteristic of your company's
plant operations? - correct answer - The company makes most all of its
footwear materials and components in- hours, uses 100-person assembly
lines to make branded shoes at the rate of 500 pairs per day, and outsources
private-label footwear from contract manufacturers in the Asia-Pacific
8. In year 11, footwear companies can expect to sell - correct answer - An
average of 4.84 million branded pairs and an average of 800,000 private-
label pairs, although sales at some companies may run higher or lower than
the average due to differing levels of competitive effort
9. Which of the following are the four geographic regions in which the
company sells branded and private-label athletic footwear?
- correct answer - Asia-Pacific, Europe-Africa, North America, and Latin
America
10. A company's price competitiveness in selling branded footwear to
retailers in a particular geographic region is determined by - correct
answer - How favorably its wholesale price compares with the average
wholesale price of all companies competing in the region
, 11. The interest rate a company pays on loans outstanding depends
on - correct answer - Its credit rating
12. Which of the following are factors in determining a
company's credit rating? - correct answer - Its interest coverage
ratio, debt-asset ratio, and default risk ratio
13. At the end of year 10, going into year 11, a company's production
capability was - correct answer - 6 million pairs without the use of overtime
and 7.2 million pairs with the use of overtime
14. 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
15. Which of the following are components of the compensation package
for productions workers at your company's plants? - correct answer - Base
wages, incentive payments per non defective pair produced, and overtime
pay
16. 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