BSG BUSINESS STRATEGY GAME FINAL
PAPER 2026 EXAM Q&A STUDY GUIDE
COMPLETE SOLUTION
◉The company's shipments of newly-produced branded and
private-label footwear from its plants to its regional distribution
centers are subject to
a. any applicable import tariffs and exchange rate adjustments.
b. shipping charges of $3 per pair on all pairs shipped from one
region to another region and exchange rate shifts of as high as 10%.
c. tariffs of $6 per pair and shipping fees of $2 per pair.
d. export fees equal to 10% of the manufacturing costs of the pairs
shipped and exchange rate shifts of as high as 25%.
e. 1-million pair import quotas on shipments from foreign plants to
Europe-Africa and Asia-Pacific and exchange rate shifts of as high as
5%.. Answer: a. any applicable import tariffs and exchange rate
adjustments.
◉The interest rate a company pays on loans outstanding depends on
, a. its free cash flow in the prior year and whether its prior-year net
profit margin exceeded 10%.
b. its credit rating.
c. Its accounts payable ratio, its debt-assets ratio, and its loan default
percentage over the past three years.
d. its current ratio, debt-equity ratio, and default risk ratio.
e. its current ratio, the amount of cash on hand to make interest
payments, and the average annual amount of free cash flow..
Answer: b. its credit rating.
◉At the end of Year 10, going into Year 11, the company's
production capability was. Answer: 6 million pairs without the use
of overtime and 7.2 million pairs with the use of overtime.
◉The market for private-label athletic footwear is projected to grow.
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.
◉Which of the following are the 5 measures on which a company's
performance is judged/scored?. Answer: Earnings per share, ROE,
stock price, credit rating, and image rating
PAPER 2026 EXAM Q&A STUDY GUIDE
COMPLETE SOLUTION
◉The company's shipments of newly-produced branded and
private-label footwear from its plants to its regional distribution
centers are subject to
a. any applicable import tariffs and exchange rate adjustments.
b. shipping charges of $3 per pair on all pairs shipped from one
region to another region and exchange rate shifts of as high as 10%.
c. tariffs of $6 per pair and shipping fees of $2 per pair.
d. export fees equal to 10% of the manufacturing costs of the pairs
shipped and exchange rate shifts of as high as 25%.
e. 1-million pair import quotas on shipments from foreign plants to
Europe-Africa and Asia-Pacific and exchange rate shifts of as high as
5%.. Answer: a. any applicable import tariffs and exchange rate
adjustments.
◉The interest rate a company pays on loans outstanding depends on
, a. its free cash flow in the prior year and whether its prior-year net
profit margin exceeded 10%.
b. its credit rating.
c. Its accounts payable ratio, its debt-assets ratio, and its loan default
percentage over the past three years.
d. its current ratio, debt-equity ratio, and default risk ratio.
e. its current ratio, the amount of cash on hand to make interest
payments, and the average annual amount of free cash flow..
Answer: b. its credit rating.
◉At the end of Year 10, going into Year 11, the company's
production capability was. Answer: 6 million pairs without the use
of overtime and 7.2 million pairs with the use of overtime.
◉The market for private-label athletic footwear is projected to grow.
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.
◉Which of the following are the 5 measures on which a company's
performance is judged/scored?. Answer: Earnings per share, ROE,
stock price, credit rating, and image rating
