CAPSIM EXAM QUESTIONS WITH
CORRECT ANSWERS 2025
LATEST UPDATE
Which three factors drive labor cost? - Answer-b. Wage and benefit rates
c. Automation levels
d. Second shift/Overtime costs
If current wages are set at $10/hour, what would be the minimum starting pay that your
company would offer? - Answer-$8/hour
80% * 10 = 8
In the current contract, the workers' wage rate is $20.00. Which of the following
negotiation positions would be outside the starting and ceiling amounts? - Answer-
$18.00 to $35.00
Team member guide/ section 7.3 : lower and upper ranges are, 80%*20 = 16, 150%*20
= 30
or Wages, the negotiation Starting Position cannot be less than ____% or more than
____% of the current contract. - Answer-80; 150
Labor Negotiation includes: - Answer-a. hourly wage.
b. benefits.
c. profit sharing.
d. annual raise.
e. all of the above.
To run perfectly, all HR department managers should know that - Answer-all strike
settlements should be halfway between the demand and the negotiation ceiling.
Your workers go on strike because they have demanded $20/hour and your wage
negotiation ceiling is at $18/hour. Assuming that there are no other labor demands, how
long will the strike last? - Answer-2 weeks
In the Human Resources section, workers will strike one week for: - Answer-a. every
1% your Annual Raise Negotiation Ceiling is beneath Labor's demand.
b. every $300 your Benefits Negotiation Ceiling is beneath Labor's demand.
c. every 1% your Profit Sharing Negotiation Ceiling is beneath Labor's demand.
d. every $1 your Wage Negotiation Ceiling is beneath Labor's demand.
,e. all of the above.
The Finance Department can use which of the following methods to acquire capital for
company activities? - Answer-Current Debt, Stock Issues, Bond Issues, and Profits
Your finance department is primarily concerned with - Answer-a. acquiring the capital
needed for company activities.
b. establishing a dividend policy that maximizes the return to shareholders.
c. setting credit policies for customers and suppliers.
d. profits.
e. all of the above.
Capital needed for company activities cannot be acquired through: - Answer-arbitrarily
firing employees.
Which financial obligation is best satisfied with Bond Issues? - Answer-Increased
production capacity
What happens to a company when its debt-to-assets ratio increases? - Answer-Its short
term interest rates increase.
d. Its bond rating is reduced.
What is your bond rate? The prime rate is 10%; your current bond rating slipped one
category (from AAA to AA). - Answer-10.5%
An AAA rating bond with a given prime rate at r, the bond rating slips to B if the current
debt interest rate is charged - Answer-R+2.5%
If your interest rate is 12.1%, and when you issue new bonds, the bond interest rate is: -
Answer-13.5%.
Given a prime rate of r and a short term interest rate of r+2.5, the bond rate for issuing a
new bond is equal to (r+3.9%). - Answer-True
Team member guide/ section 4.4.2: r+2.5% +1.4% = r+3.9%
You pay no brokerage fee if you: - Answer-Allow bonds to mature to their due date.
In Capstone what would the bond number be for a bond with an interest rate of 6.5%
that matures in 2003? - Answer-6.5S2003
You are charged a ____ brokerage fee to issue stock and ____ brokerage fee to retire
stock. - Answer-5%; 1.5%
The Credit Policy Lag has implications for: - Answer-Customer survey score.
&
Production.
, Budgeting money to Quality initiative will lead to these outcomes except: - Answer-
increase Labor Costs.
When opening the Excel version of Capstone®, you should do what to Macros? -
Answer-Enable
If there are two identical products, one that has 100% accessibility and one that has 0%
accessibility, - Answer-the product with 100% accessibility will outsell the other 2 to 1
providing all other attributes are identical.
How many products does every team start with? - Answer-Five products
What are three of the five Segments? - Answer-Traditional, Low End, Performance
A segment manager's task is to - Answer-verify the products entering and leaving a
segment, the margin potential for those products, capacity level
and the distribution system as compared to competitors.
What is the difference between the market segments at the beginning of the round to
the final round? - Answer-he fine cuts overlap in the beginning and in year 8 only the
rough cuts overlap.
7. Successful managers will: - Answer-a. Create a strategy
b. Coordinate company activities
c. Analyze the market and its competing products
After you have uploaded your decisions to the website, you can change your official
decisions as many times as you want prior to the processing date and time of the round.
- Answer-. True
Once you upload your official decisions during a round, how many times can you
change them before the end of the round? - Answer-As many times as you want
What trend can be explicitly observed in the industry in which your company is
operating? - Answer-Products become smaller and smaller.
On perceptual map, the percentage of customers interested in a product positioned
outside of the rough cuts of that product i - Answer-0%
MTBF is measured in - Answer-hour increments.
Customers that want low prices and are willing to sacrifice miniaturization and
performance are in the - Answer-low End segment.
CORRECT ANSWERS 2025
LATEST UPDATE
Which three factors drive labor cost? - Answer-b. Wage and benefit rates
c. Automation levels
d. Second shift/Overtime costs
If current wages are set at $10/hour, what would be the minimum starting pay that your
company would offer? - Answer-$8/hour
80% * 10 = 8
In the current contract, the workers' wage rate is $20.00. Which of the following
negotiation positions would be outside the starting and ceiling amounts? - Answer-
$18.00 to $35.00
Team member guide/ section 7.3 : lower and upper ranges are, 80%*20 = 16, 150%*20
= 30
or Wages, the negotiation Starting Position cannot be less than ____% or more than
____% of the current contract. - Answer-80; 150
Labor Negotiation includes: - Answer-a. hourly wage.
b. benefits.
c. profit sharing.
d. annual raise.
e. all of the above.
To run perfectly, all HR department managers should know that - Answer-all strike
settlements should be halfway between the demand and the negotiation ceiling.
Your workers go on strike because they have demanded $20/hour and your wage
negotiation ceiling is at $18/hour. Assuming that there are no other labor demands, how
long will the strike last? - Answer-2 weeks
In the Human Resources section, workers will strike one week for: - Answer-a. every
1% your Annual Raise Negotiation Ceiling is beneath Labor's demand.
b. every $300 your Benefits Negotiation Ceiling is beneath Labor's demand.
c. every 1% your Profit Sharing Negotiation Ceiling is beneath Labor's demand.
d. every $1 your Wage Negotiation Ceiling is beneath Labor's demand.
,e. all of the above.
The Finance Department can use which of the following methods to acquire capital for
company activities? - Answer-Current Debt, Stock Issues, Bond Issues, and Profits
Your finance department is primarily concerned with - Answer-a. acquiring the capital
needed for company activities.
b. establishing a dividend policy that maximizes the return to shareholders.
c. setting credit policies for customers and suppliers.
d. profits.
e. all of the above.
Capital needed for company activities cannot be acquired through: - Answer-arbitrarily
firing employees.
Which financial obligation is best satisfied with Bond Issues? - Answer-Increased
production capacity
What happens to a company when its debt-to-assets ratio increases? - Answer-Its short
term interest rates increase.
d. Its bond rating is reduced.
What is your bond rate? The prime rate is 10%; your current bond rating slipped one
category (from AAA to AA). - Answer-10.5%
An AAA rating bond with a given prime rate at r, the bond rating slips to B if the current
debt interest rate is charged - Answer-R+2.5%
If your interest rate is 12.1%, and when you issue new bonds, the bond interest rate is: -
Answer-13.5%.
Given a prime rate of r and a short term interest rate of r+2.5, the bond rate for issuing a
new bond is equal to (r+3.9%). - Answer-True
Team member guide/ section 4.4.2: r+2.5% +1.4% = r+3.9%
You pay no brokerage fee if you: - Answer-Allow bonds to mature to their due date.
In Capstone what would the bond number be for a bond with an interest rate of 6.5%
that matures in 2003? - Answer-6.5S2003
You are charged a ____ brokerage fee to issue stock and ____ brokerage fee to retire
stock. - Answer-5%; 1.5%
The Credit Policy Lag has implications for: - Answer-Customer survey score.
&
Production.
, Budgeting money to Quality initiative will lead to these outcomes except: - Answer-
increase Labor Costs.
When opening the Excel version of Capstone®, you should do what to Macros? -
Answer-Enable
If there are two identical products, one that has 100% accessibility and one that has 0%
accessibility, - Answer-the product with 100% accessibility will outsell the other 2 to 1
providing all other attributes are identical.
How many products does every team start with? - Answer-Five products
What are three of the five Segments? - Answer-Traditional, Low End, Performance
A segment manager's task is to - Answer-verify the products entering and leaving a
segment, the margin potential for those products, capacity level
and the distribution system as compared to competitors.
What is the difference between the market segments at the beginning of the round to
the final round? - Answer-he fine cuts overlap in the beginning and in year 8 only the
rough cuts overlap.
7. Successful managers will: - Answer-a. Create a strategy
b. Coordinate company activities
c. Analyze the market and its competing products
After you have uploaded your decisions to the website, you can change your official
decisions as many times as you want prior to the processing date and time of the round.
- Answer-. True
Once you upload your official decisions during a round, how many times can you
change them before the end of the round? - Answer-As many times as you want
What trend can be explicitly observed in the industry in which your company is
operating? - Answer-Products become smaller and smaller.
On perceptual map, the percentage of customers interested in a product positioned
outside of the rough cuts of that product i - Answer-0%
MTBF is measured in - Answer-hour increments.
Customers that want low prices and are willing to sacrifice miniaturization and
performance are in the - Answer-low End segment.
