TEST PRACTICE SOLUTION 2026 100%
CORRECT.
⫸ Which one of the following actions helps increase a company's
image rating/brand reputation? Answer: Increasing the P/Q rating for
the company's action camera models
⫸ If a management team wishes to undertake efforts specifically
aimed at helping the company meet or beat the investor-expected
increases in the company's stock price in upcoming years, then it
should pursue actions to Answer: utilize a portion of cash flows from
operations to repurchase shares of common stock on a regular basis to
help grow EPS.
⫸ Which one of the following results from the latest decision round
is MOST important in providing guidance to company managers in
making strategic moves and decisions to improve their company's
competitiveness and rank among the top-performing companies in the
current decision round? Answer: The data presented in the
Comparative Financial Performances section at the top of p. 5 of the
Camera & Drone Journal
⫸ Based on the above data for your company, which of the following
statements is false? Answer: Your company had a net overall
competitive disadvantage of a size sufficient to produce a market
share that was 1.1 percentage points below the industry average.
, ⫸ Which one of the following actions does not help boost PAT
productivity in assembling cameras or drones? Answer: Maintaining a
total compensation package that is slightly lower than the industry
average total compensation package
⫸ Based on the above data for your company, which of the following
statements is false? Answer: Your company's biggest percentage
competitive disadvantage related to search engine advertising.
⫸ If a company earns net income of $48 million in Year 10, has 18
million shares of common stock outstanding, pays a dividend of $0.50
per share, and has annual interest costs of $8 million, then Answer:
the company's EPS for Year 10 would be $2.67 and its retained
earnings for Year 10 would be $39 million (net income of $48 million
less dividend payments of $9 million); the $39 million in retained
earnings would in turn be treated as $39 million of additional equity
investment by stockholders on the company's year-end Balance Sheet.
⫸ Which one of the following is not usually an effective way to
reduce production/assembly costs and/or marketing costs per action-
capture camera sold in an effort to achieve a sizable low-cost
competitive advantage over rivals? Answer: Switching to robot-
assisted assembly methods to lower depreciation costs at the
production facilityPaying PAT members an assembly quality incentive
⫸ The makers of UV drones have good reason to sell their drone
models to buyers in the Asia-Pacific at higher average website prices
than the average website prices charged to buyers in the Europe-