Glo2 questions with proper answers

Glo-bus Quiz 2 questions with correct
answers

Which one of the following is NOT a way to improve the P/Q rating of a company's brand
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of multi-featured cameras - answer-Increasing the number of models in the company's
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line of multi-featured cameras.
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Assume a company's Income Statement for a given quarter is as follows: Sales
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Revenues (50,000), Production Costs (26,500), Delivery Costs (1,600), Marketing Costs
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(8,500), Administrative Expenses (2,000), Operating Profit (14,400), Net Interest (750),
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Income Before Taxes (13,650), Taxes (4,095), Net Income (9,555). Based on the above
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data, which of the following statements is false? - answer-Delivery costs are 2.8% of
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revenues and represent the company's smallest cost component.
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One of the benefits of pursuing a strategy of social responsibility and corporate
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citizenship is - answer-An enhanced image rating, provided company spending for
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socially responsible activities is meaningful and is sustained over a multi-year period.
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Which of the following is NOT an action company co-managers can take to boost a
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subpar ROE? - answer-Issue additional shares of stock and use the proceeds to pay
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down the debt outstanding on the company's line of credit.
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Which one of the following actions is usually a dependable and appealing way for
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managers to try to boost their company's EPS? - answer-Achieve a differentiation-
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based competitive advantage over rivals in both the entry-level and multi-featured
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camera segments that company managers are savvy enough to sustain; as the market
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demand for digital cameras grows worldwide and the company exploits its competitive
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advantage to win additional sales, the profit margins from a growing sales volume of
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entry-level and multi-featured digital cameras typically results in increase in EPS.
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The industry-low, industry-average, and industry-high benchmarks for camera costs and
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operating profits on pp. 5-6 of each issue of the GLO-BUS Statistical Review. - answer-
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Are worth careful scrutiny by the managers of all companies because when the
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benchmarking data signals that a company's costs/operating profits for one or more of
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the benchmarks are clearly out-of-line (or unappealing), managers are well advised to
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take corrective action in the next decision round.
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According to the depreciation rates used by the company and described in the
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Production Cost Report, if a company adds 50 new workstations at a cost of $75,000
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