BSG PRACTICE EXAMINATION 2026
QUESTIONS WITH ANSWERS GRADED A+
◍ Which decision most directly affects your S/Q rating?.
Answer: Materials quality, TQM spending, and worker training.
◍ Exchange rate change only affect production cost.
Answer: False, they affect cost and revenues
◍ profit-enhancing appeal that a company can pursue to reduce its exposure to
adverse exchange rate adjustments to the manufacturing costs of pairs
shipped to a distribution warehouse form a plant in a diff geog region is to.
Answer: -build sufficient pant capacity in each of the 4 regions to greatly
reduce the need to ship pairs to a distribution warehouse from a plant in a
different geographic region - sucha strategy...benefit of cutting tariff pmt on
imported footwearAdjust the company's pricing and marketing efforts each
decision round to sell more pairs in regions where exchange rate
adjustments are favourable and fewer pairs in regions where the adjustments
are unfavourable; such shifts tend to boost profits in regions with
unfavourable adjustments.
◍ Competitors cut prices. Two responses?.
Answer: Lower prices or improve differentiation (quality, advertising)
◍ which of the following are effective ways for managers to try to boost a
company's stock price.
Answer: increase the company's dividend payment to shareholders each yr
by at least $0.05/share, repurchase shares of common stock, and make every
effort to achieve annual increase in earnings/share.
◍ Price alone determines market share.
Answer: False
, ◍ Why not only in the Asia Pacific.
Answer: Tariffs, shipping cost, and exchange rate risks
◍ It makes good economic sense for company managers to consider investing
$3.5 mil /mil pairs of capacity for a plant facilities upgrade that will boost
labor productivity by 25%.
Answer: At plant that currently has labor productivity of 3,200 pairs/worker
and total employee compensation of $20,000 annually because the upgrade
will cause labor costs/pair produced to decline from $6.25 to $5.00Labor
costs/pair = 20,000/3,200 = $6.25After increase in productivity =
20,000/(3,200*1.25) = $5.00Reduction = $1.25- boost at a plant where
$18,000 for 3,000 pairs vs. $4,000 for same 3,000.
◍ Advertising alone can increase demand even without S/Q improvement.
Answer: True
◍ The most attractive way to reduce or eliminate the impact of paying tariffs
on pairs imported to a company's distribution warehouse in Europe-Africa.
Answer: Build a plant in EA
◍ What do Competitive Intelligence Reports show?.
Answer: What do Competitive Intelligence Reports show?
◍ which one of the following does NOT help boost a company's image
rating?.
Answer: -paying total compensation to plant employees that is below the
industry average-Spending additional money on celebrity endorsements and
advertising to help inform the general public about the company's good
deeds in being a good corporate Citizen and its socially responsible
activities.
◍ Causes or unsold inventory.
Answer: Overproduction or weak demand/pricing mismatch
◍ which one of the following actions is certain not to result in lower
production costs per branded pair at one of your company's plants?.
Answer: A 3% increase in the annual base wage that is accompanied by a
QUESTIONS WITH ANSWERS GRADED A+
◍ Which decision most directly affects your S/Q rating?.
Answer: Materials quality, TQM spending, and worker training.
◍ Exchange rate change only affect production cost.
Answer: False, they affect cost and revenues
◍ profit-enhancing appeal that a company can pursue to reduce its exposure to
adverse exchange rate adjustments to the manufacturing costs of pairs
shipped to a distribution warehouse form a plant in a diff geog region is to.
Answer: -build sufficient pant capacity in each of the 4 regions to greatly
reduce the need to ship pairs to a distribution warehouse from a plant in a
different geographic region - sucha strategy...benefit of cutting tariff pmt on
imported footwearAdjust the company's pricing and marketing efforts each
decision round to sell more pairs in regions where exchange rate
adjustments are favourable and fewer pairs in regions where the adjustments
are unfavourable; such shifts tend to boost profits in regions with
unfavourable adjustments.
◍ Competitors cut prices. Two responses?.
Answer: Lower prices or improve differentiation (quality, advertising)
◍ which of the following are effective ways for managers to try to boost a
company's stock price.
Answer: increase the company's dividend payment to shareholders each yr
by at least $0.05/share, repurchase shares of common stock, and make every
effort to achieve annual increase in earnings/share.
◍ Price alone determines market share.
Answer: False
, ◍ Why not only in the Asia Pacific.
Answer: Tariffs, shipping cost, and exchange rate risks
◍ It makes good economic sense for company managers to consider investing
$3.5 mil /mil pairs of capacity for a plant facilities upgrade that will boost
labor productivity by 25%.
Answer: At plant that currently has labor productivity of 3,200 pairs/worker
and total employee compensation of $20,000 annually because the upgrade
will cause labor costs/pair produced to decline from $6.25 to $5.00Labor
costs/pair = 20,000/3,200 = $6.25After increase in productivity =
20,000/(3,200*1.25) = $5.00Reduction = $1.25- boost at a plant where
$18,000 for 3,000 pairs vs. $4,000 for same 3,000.
◍ Advertising alone can increase demand even without S/Q improvement.
Answer: True
◍ The most attractive way to reduce or eliminate the impact of paying tariffs
on pairs imported to a company's distribution warehouse in Europe-Africa.
Answer: Build a plant in EA
◍ What do Competitive Intelligence Reports show?.
Answer: What do Competitive Intelligence Reports show?
◍ which one of the following does NOT help boost a company's image
rating?.
Answer: -paying total compensation to plant employees that is below the
industry average-Spending additional money on celebrity endorsements and
advertising to help inform the general public about the company's good
deeds in being a good corporate Citizen and its socially responsible
activities.
◍ Causes or unsold inventory.
Answer: Overproduction or weak demand/pricing mismatch
◍ which one of the following actions is certain not to result in lower
production costs per branded pair at one of your company's plants?.
Answer: A 3% increase in the annual base wage that is accompanied by a
