Description : Given a prime rate of r and a short term interest rate of r+2.5, the Bond rate is equal to (r+3.9%). a. True b. False
Last Answer : a. True
Description : What happens to a company when its debt-to-assets ratio increases? a. Its credibility among creditors suffers. b. It envisages higher risk. c. Its short term interest rates increase. d. Its bond rating is reduced. e. c, d
Last Answer : e. c, d
Description : What is your bond rate? The prime rate is 10%; your current bond rating slipped one category (from AAA to AA). a. 12.1% b. 10.5% c. 11.4% d. 11.2%
Last Answer : b. 10.5%
Description : The interest rate on a bond ______ by________ for each______ in the bond rating category. a. Increases; 0.5%; Decrease b. Decreases; 1.4%; Decrease c. Increases; 0.5%; Increases d. Decreases; 1.4%; Increase e. Increases; 7.5% ; Decrease
Last Answer : a. Increases; 0.5%; Decrease
Description : The reliability component cost of a product with a 17,000 hour MTBF rating is: a. $5.10. b. $17.00. c. $51.00. d. $170. e. cost cannot be determined with information given.
Last Answer : a. $5.10.
Description : In Capstone® what would the bond number be for a bond with an interest rate of 6.5% that matures in 2003? a. 6.5S03 b. 2003S6.5 c. 6.5S2003 d. .03S6.5 e. 6.5.2003
Last Answer : c. 6.5S2003
Description : If you want to add 500,000 units of capacity to an assembly line with an automation rating of 5, how much will it cost? a. 1,200,000 b. 1,300,000 c. 13,000,000 d. 24,000,000 e. 26,000,000
Last Answer : c. 13,000,000
Description : Which of the following will result in the highest interest rate: a. Issuing Bonds. b. Issuing Stock. c. Current Debt. d. Emergency Loan. e. Both a combination of a and b.
Last Answer : d. Emergency Loan.
Description : Emergency loans are made at what rate over the normal Current Debt interest rate? a. 5% b. 7.5% c. 10% d. 12% e. 25%
Last Answer : b. 7.5%
Description : A bond with the number 12.6S2005, indicates that: a. the interest rate is 12.6%; due in May. b. the interest rate is 12%; due on June 05. c. the interest rate is 12%; due in June 2005. d. the interest rate is 5%; due on December 6. e. the interest rate is 12.6%; due on December 31, 2005.
Last Answer : e. the interest rate is 12.6%; due on December 31, 2005.
Description : If your interest rate is 12.1%, and when you issue new bonds, the bond interest rate is: a. 10.7%. b. 12.1%. c. 13.5%. d. 6.1%. e. 12%.
Last Answer : c. 13.5%.
Description : Which of the following will give your company an AAA bond rating: a. Have contribution margins higher than 30%. b. Have absolutely no debt. c. Retire all of the current outstand stock. d. Pay a dividend that is less than EPS. e. Retire bonds before they are due.
Last Answer : b. Have absolutely no debt.
Description : A new unit of capacity costs $6 for the floor space plus $4 times a. hourly wage. b. automation rating. c. unit cost. d. MTBF. e. $0.65.
Last Answer : b. automation rating.
Description : If a product's Automation rating is substantially increased, it will: a. take longer to move the product across the Perceptual Map. b. take a shorter time to move the product across the Perceptual Map. ... Perceptual Map. d. have no effect on the product moving across the Perceptual Map. e. other.
Last Answer : a. take longer to move the product across the Perceptual Map.
Description : Which Automation rating requires the longest time to reposition a product? a. 1 b. 3 c. 7 d. 9 e. 10
Last Answer : e. 10
Description : R&D completion time depends on a. number of projects in R&D. b. automation rating. c. similarity to existing products. d. size of the product. e. a, b, and c.
Last Answer : e. a, b, and c.
Description : Stock price is a direct function of dividends, EPS, and ______ along with emergency loans? a. debt rating c. book value b. cash on hand d. yield ratio
Last Answer : c. book value
Description : Which is false about production in Capsim? a. Teams cannot produce beyond 100% capacity. b. Teams should match their production schedule to the teams sales forecast. c. There is a one year lag ... year lag between purchase and use of additional production automation. e. All of the above are true.
Last Answer : a. Teams cannot produce beyond 100% capacity.
Description : Products with prices, MTBFs or positioning in the segments rough cut do contribute to the segments accessibility. a. True b. False
Last Answer : b. False
Description : 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. a. True b. False
Description : The economic environment for this simulation game will include a. a favorable environment featuring limited growth, high inflation, and reasonable interest rates. b. a favorable environment featuring ... inflation rates, and constant interest rates. e. economic downturn and other surprises.
Last Answer : b. a favorable environment featuring modest growth, low inflation, and reasonable interest rates.
Description : What is one drawback of increasing automation? a. The product requires increased time/expense for subsequent short-move repositioning. b. Operating second shift becomes more expensive. c. ... d. Automation slows production capability. e. It requires more employees for the production line.
Last Answer : a. The product requires increased time/expense for subsequent short-move repositioning.
Description : Which one of the following statements regarding preferred position in fine cut is false? a. Traditional customers want products located in the center of the circle. b. Low end customers want the ... . d. Performance customers prefer higher performance levels. e. Size customers want smaller size.
Last Answer : b. Low end customers want the newest technology at the cheapest price.
Description : What is the most important element that ensures the accuracy of the Proformas reports? a. Production capacity b. Marketing sales forecasts c. R & D decisions d. Financial decisions e. All of the above
Last Answer : b. Marketing sales forecasts
Description : The A/R lag is a. a marketing spreadsheet definition. b. the accounts receivable lag (in days). c. the time between customers receiving products and when they are expected to pay for them. d. a, b, and c.
Last Answer : d. a, b, and c.
Description : Which financial obligation is best satisfied with Bond Issues? a. Accounts Payable b. Increased production capacity c. Changes in A/R policy d. Salary increases e. All of the above
Last Answer : b. Increased production capacity
Description : Which of the following is not the correct yearly drift rate for the corresponding segment? a. In the traditional segment performance drifts by +0.7 and size by -0.7. b. In the low segment performance drifts by +0.5 ... size by -0.7. e. In the size segment performance drifts by -0.7 and size by +1.0.
Last Answer : e. In the size segment performance drifts by -0.7 and size by +1.0.
Description : As a general rule, stock issues are used to: a. Protect you from getting a loan from Big Al. b. Fund the purchase of more market share. c. Fund long term investments in capacity and automation. d. Fund yearly sales and promotional budgets. e. All of the above.
Last Answer : c. Fund long term investments in capacity and automation.
Description : n Capstone® a. the terms age and perceived age are not used interchangeably. b. the term MTBF means multiple transient business format. c. the terms age and perceived age are used interchangeably. d. all products will eventually have to be retired. e. none of the above.
Last Answer : c. the terms age and perceived age are used interchangeably.
Description : The percentage of workers that left the company last year is the: a. Complement. b. Separated Employees. c. Productivity Index. d. Turnover rate. e. None of the above.
Last Answer : d. Turnover rate.
Description : The turnover rate a. is the percentage of workers who left the company last year, excluding down-sizing. b. does not ignore down-sizing factors. c. is not driven by recruiting spend or training ... factors like retirement, relocation and weeding out poor workers (about 5%). e. a and d.
Last Answer : e. a and d.
Description : 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? a. $16.00 to $25.00 b. $18.00 to $30.00 c. $18.00 to $35.00 d. $16.00 to $20.00
Last Answer : c. $18.00 to $35.00
Description : Automation levels are given on a scale of _____ to _____. a. 0.0; 5.0 b. 1.0; 5.0 c. 0.0; 10.0 d. 1.0; 10.0 e. 5.0; 10.0
Last Answer : d. 1.0; 10.0
Description : Which of the following statements is true about promo and sales budget? a. From one year to the next, a third of those who knew about a product forgot about it. b. If a product ended last year ... least two products in the segment's fine cut to achieve 100% accessibility. e. All of the above.
Last Answer : e. All of the above.
Description : Which of the following is true about the Accounts Receivable Lag and its implications on demand? a. If you offer no credit, demand falls to about 60% of normal. b. At 30 days, demand is 90%. c. At 45 days, demand is 95%. d. At 60 days, demand is 98.5%. e. At 90 days, demand is 100%.
Last Answer : d. At 60 days, demand is 98.5%.
Description : Which statement is true? a. Increasing in capacity and changes in automation can take less than a year to implement if the product already exists. Sales of capacity take a full year to implement ... automation and sales of capacity take less than a year to implement if the product already exists.
Last Answer : b. Increases in capacity and changes in automation take a full year to implement. Sales of capacity are immediate.
Description : To run perfectly, all HR department managers should know that a. the negotiation starting point should not exceed 80%. b. the starting point for benefits or wages should be between 0-150% of the current ... negotiation ceiling. d. all of the above is correct. e. none of the above are true.
Last Answer : c. all strike settlements should be halfway between the demand and the negotiation ceiling.
Description : At the start of the simulation, all assembly lines have an automation level between: a. 2.0 and 4.0. b. 3.0 and 5.0. c. 4.0 and 6.0. d. 5.0 and 7.0. e. 6.0 and 8.0.
Last Answer : b. 3.0 and 5.0.
Description : Account Receivables lag impacts sales. At no credit terms, the appeal falls to about ______ %, at 30 days, appeal is _____ %, at 60 days, appeal is ______%. a. 98.5, 92, 65 b. 65, 92, 98.5 c. 70, 85, 99 d. none of the above, there is no impact
Last Answer : b. 65, 92, 98.5
Description : Every year the Traditional segment circle drifts ____ in performance and _____ in size. a. +1.0, -0.7 b. +0.7, -0.7 c. -0.7, +0.7 d. +0.5, -0.5 e. +0.9, -0.9
Last Answer : b. +0.7, -0.7
Description : The inner fine cut circles on the perceptual map have a radius of ________ units. a. 2 b. 2.5 c. 2.75 d. 1.5 e. 3
Last Answer : b. 2.5
Description : The center spot of traditional products drifts _______ each year. a. +0.7 performance, -0.7 size b. +0.5 performance, -0.5 size c. +0.9 performance, -0.9 size d. +1.0 performance, -0.7 size e. +0.7 performance, -1.0 size
Last Answer : a. +0.7 performance, -0.7 size
Description : High end customers prefer a product age of 0, at what age exceeds the fine cut for the product a. 5 years. b. 3 years. c. 2 years. d. 2.5 years. e. 4 years.
Last Answer : c. 2 years.
Description : What is the size of the plant at the start of the simulation? a. 5 assembly lines with space to add 1 more. b. 5 assembly lines with space to add 3 more. c. 5 assembly lines with space to add 2 more. d. 8 assembly lines. e. 0 – the plan can be built to team specification.
Last Answer : b. 5 assembly lines with space to add 3 more. c.
Description : Teams can produce up to ______ products. a. 9 b. 7 c. 8 d. 5 e. 6
Last Answer : c. 8
Description : Products must plot within ______ units from the center of the circle on the Perceptual Map to survive the rough cut. a. 3.0 b. 4.0 c. 1.0 d. 2.5
Last Answer : b. 4.0
Description : he Promotion part of marketing in CapSim allows teams to allocate their time based on a. market segments. b. each Product. c. promotion does not allow allocation of time. d. each of the 5 designated promotional areas.
Last Answer : b. each Product.
Description : What is the minimum amount of time that it takes to create a new product? a. 3 months b. 6 months c. 1 year d. 2 years e. 5 years
Last Answer : c. 1 year
Description : .As a manager you need to change the automation level of your segment from 2 to 5. The line has a capacity of $2 million. How much would it cost? a. $12 million b. $24 million c. $10 million d. $6 million e. none of the above
Last Answer : b. $24 million
Description : .If you are currently producing 100,000 units at an automation level of 5, how much would it cost to maximize automation? a. $500,000 b. $50,000 c. $2,000,000 d. $5,000,000 e. none of the above
Last Answer : c. $2,000,000