Glo-bus Quiz 2 || with Complete Solutions.
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 answers 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 answers 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 answers 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 answers 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 answers 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
answers 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
benchmarks are clearly out-of-line (or unappealing), managers are well advised to take
corrective action in the next decision round.
According to the depreciation rates used by the company and described in the Production
Cost Report, if a company adds 50 new workstations at a cost of $75,000 each and also
spends $10 million for an addition to its assembly plant to accommodate the new
workstations, than its annual depreciation costs will rise by correct answers $550,000
Assume a company's Income Statement for a given period has the following entries: Sales
Revenues (50,000), Production Costs (26,500), Delivery Costs (1,600), Marketing Costs
(8,500), Administrative Expenses (3,000), Operating Profit (13,400), Net Interest (750),
Income Before Taxes (12,650), Taxes (3,795), Net Income (8,855). Based on the above
income statement data, the company's operating profit margin and net profit margin are
correct answers 26.8% and 17.7%.
Which of the following sets of actions are unlikely to help a company achieve a
differentiation-based competitive advantage over some/many of its rivals that are marketing
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 answers 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 answers 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 answers 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 answers 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 answers 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
answers 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
benchmarks are clearly out-of-line (or unappealing), managers are well advised to take
corrective action in the next decision round.
According to the depreciation rates used by the company and described in the Production
Cost Report, if a company adds 50 new workstations at a cost of $75,000 each and also
spends $10 million for an addition to its assembly plant to accommodate the new
workstations, than its annual depreciation costs will rise by correct answers $550,000
Assume a company's Income Statement for a given period has the following entries: Sales
Revenues (50,000), Production Costs (26,500), Delivery Costs (1,600), Marketing Costs
(8,500), Administrative Expenses (3,000), Operating Profit (13,400), Net Interest (750),
Income Before Taxes (12,650), Taxes (3,795), Net Income (8,855). Based on the above
income statement data, the company's operating profit margin and net profit margin are
correct answers 26.8% and 17.7%.
Which of the following sets of actions are unlikely to help a company achieve a
differentiation-based competitive advantage over some/many of its rivals that are marketing
