Description : You are charged a ______ brokerage fee to issue bonds and ______ brokerage fee if you retire bonds prior to their maturation date. a. 0%; 5% b. 5%; 5% c. 5%; 0% d. 5%; 1.5% e. 1.5%; 5%
Last Answer : d. 5%; 1.5%
Description : You are charged a ____ brokerage fee to issue stock and ____ brokerage fee to retire stock. a. 5%; 0% b. 5%; 1.5% c. 1.5%; 5% d. 0%; 5% e. 5%; 5%
Last Answer : b. 5%; 1.5%
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 : One way to finance expansion is through the issuing of bonds. When this happens, your company is charged a _____% brokerage fee for issuing the bonds. a. 2% c. No fee is charged b. 5% d. 7.5%
Last Answer : b. 5%
Description : Capital needed for company activities cannot be acquired through: a. stocks and bonds. b. profits. c. current debt. d. arbitrarily firing employees. e. all of the above.
Last Answer : d. arbitrarily firing employees.
Description : The Finance Department can use which of the following methods to acquire capital for company activities? a. Current Debt, Stock Issues, Bond Issues, and Profits b. Profits, Current Debt, Withholding ... Stock Issues, and Profits e. Current Debt, Stock Issues, Bond Issues, and cooking the books
Last Answer : a. Current Debt, Stock Issues, Bond Issues, and Profits
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 : 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 : Capital used for financing activities can be acquired through_______________. a. Current debt b. Stock issues c. Bond issues d. Profits e. All the above
Last Answer : e. All the above
Description : Which one is not the source of acquiring capital? a. Profits b. T-Bills c. Current Debt d. Stock e. Bond
Last Answer : b. T-Bills
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 : Which of the following is not one of the primary concerns in the Finance Department? a. Acquiring the capital needed for company activities. b. Establishing a dividend policy that maximizes the ... structure of the firm, its relationship between debt and equity. e. Deciding promo and sales budget
Last Answer : e. Deciding promo and sales budget
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 : If current wages are set at $10/hour, what would be the minimum starting pay that your company would offer? a. $6/hour b. $8/hour c. $10/hour d. $12/hour e. none of the above
Last Answer : b. $8/hour
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 : Maximum issue is a. the upper limit in thousands of dollars that teams can issue in stock this year. b. amount in thousands of dollars that teams wish to issue in stock. c. upper limit of stock that can be ... thousands of dollars. d. amount of stock, if any, to buy back. e. none of the above.
Last Answer : a. the upper limit in thousands of dollars that teams can issue in stock this year.
Description : Negotiation Ceilings which represent the maximum management is willing to pay are always a. 12% above the starting positions. b. 5% above the starting positions. c. 10% above the starting positions. d. unlimited. e. none of the above.
Last Answer : c. 10% above the starting positions.
Description : Assuming no additional product promotion, what percent of customers, reached through last year’s marketing campaign will carry over into the current year? a. 33% b. 50% c. 67% d. 0% e. None of the above
Last Answer : c. 67%
Description : Can You Retire on the Highest Dividend Paying Stocks?
Last Answer : Planning for retirement is not easy. Some people will add up a lump sum figure of cash they would need to live on during their retirement years. They may annualize their monthly expenses, then ... mind that is it best to diversify your income as much as possible in retirement to minimize risk.
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 of the following is an important fact about working capital in Capsim? a. The life blood of any organization b. All of the money tied up in things you one day wish to sell c. Can be ... The change of working capital can be seen on the cash flow statement e. All of the above are important
Last Answer : e. All of the above are important
Description : What is working capital? a. The funds needed for the day to day running of the company b. The cash on hand at the end of the day c. Profits less current liabilities d. The amount of funds a company needs to run indefinitely e. Total sales less total expenses
Last Answer : a. The funds needed for the day to day running of the company
Description : Adding one additional unit of capacity costs a. $4 x Change (difference) in Automation Level b. $6 + ($4 x Current Automation Level). c. $6 x Change (difference) in Automation Level. d. $4 + ($6 x Current Automation Level). e. none of these.
Last Answer : b. $6 + ($4 x Current Automation Level).
Description : EPS (Earning Per Share) is calculated by a. adding net profit by the number of current shares. b. dividing net profit by the number of current shares. c. adding net profit to the number of shares outstanding. d. dividing net profit by the number of shares outstanding. e. none of these.
Last Answer : d. dividing net profit by the number of shares outstanding.
Description : The company’s negotiation starting position for wages a. is never more than 150% of the current contract. b. is always lower than what Labor expects. c. is always exactly 80% of the current contract. d. is always half of the increase workers are asking for. e. none of these.
Last Answer : a. is never more than 150% of the current contract.
Description : .If your current capacity is 10,000 units and your automation level is 5.0, what is the difference of the investment between doubling your capacity and doubling your automation level? a. $60,000 b. $20,000 c. $10,000 d. $520,000 e. $260,000
Last Answer : a. $60,000
Description : The situation analysis is a. a team exercise. b. designed to help your group understand the current market conditions. c. designed to help your group understand how the industry will evolve over the next 8 years. d. a five part analysis. e. all of the above.
Last Answer : e. all of the above.
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 : 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 : For Wages, the negotiation Starting Position cannot be less than ____% or more than ____% of the current contract. a. 75; 125 b. 75; 150 c. 80; 125 d. 80; 150
Last Answer : d. 80; 150
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 : Looking at the production, if the potential bar is higher than the actual one, a. the company should spend more budget in sales. b. the company over produced and missed sales ... company under produced and missed sales opportunities. e. the company should spend more budget in marketing.
Last Answer : d. the company under produced and missed sales opportunities.
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 : Labor will strike for a maximum: a. 10 days. b. 84 days. c. 60 days. d. 30 days. e. There is no strike maximum.
Last Answer : b. 84 days.
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 : When going to a new automation level a. there is a 1 year lag. b. there is a lag dependent on the amount the automation level has been changed. c. there is no lag. d. the lag is dependent on the cost. e. none of the above.
Last Answer : a. there is a 1 year lag.
Description : 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? a. 2 weeks b. ... . 8 weeks d. 16 weeks e. There is no way to determine how long the strike will last.
Last Answer : a. 2 weeks
Description : Changing MTBF will: a. have no impact on Perceived Age. b. increase Perceived Age. c. decrease Perceived Age. d. change Perceived Age. e. is undetermined.
Last Answer : a. have no impact on Perceived Age.
Description : When an R&D effort started in 2001 completes on September 15, 2002, the product revision kicks in a. October 1, 2002. b. immediately upon completion. c. January 1, 2003. d. R&D has no effect on product revisions. e. September 15, 2003.
Last Answer : b. immediately upon completion.
Description : ncreasing a product’s reliability will result in which of the following changes to production costs? a. Lower material cost b. Higher material cost c. Higher labor costs d. Lower labor costs e. Reducing MTBF has no effect on costs of production
Last Answer : b. Higher material cost
Description : The two types of investments that provide the highest and lowest yields in the Ibbotson study of Stocks, Bonds, Bills and Inflation are A. Large company stocks; U.S. treasury bills B. Large ... Treasury bills D. Small company stocks; preferred stock E. U.S. treasury bills; small company stocks
Last Answer : C. Small company stocks; U.S. Treasury bills
Description : Investing more than $5,000,000 in the same TQM initiative over a two or three year period creates a. little or no additional improvement. b. high additional improvement. c. the same improvement than last period. d. diminishing returns.
Last Answer : a. little or no additional improvement.
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 : If your company offers no credit terms, demand a. remains constant. b. falls 25%. c. falls 50%. d. falls 65%.
Last Answer : d. falls 65%.
Description : It takes ______ years to invent a product. a. 3 or 4 months b. 6 months c. More than 1 year but no more than 3 years d. More than 3 years
Last Answer : c. More than 1 year but no more than 3 years
Description : Higher automation leads to lower production costs and has what effect on repositioning a product on the perceptual map? a. makes it more difficult and expensive b. makes it easier and cheaper c. no effect d. eliminates repositioning
Last Answer : a. makes it more difficult and expensive
Description : On the perceptional map, where is the “sweet/ideal spot” in the High End segment? a. in the center of the circle c. there is no sweet spot in High End b. on the trailing edge of the circle d. on the leading edge of the circle
Last Answer : d. on the leading edge of the circle
Description : .In which of the following instances would the independence of the CPA not be considered to be impaired? The CPA has been retained as the auditor of a brokerage firm a. Which owes the CPA audit ... owes the CPA audit fees for services in the current year and has just filed a petition for bankruptcy
Last Answer : Which owes the CPA audit fees for services in the current year and has just filed a petition for bankruptcy
Description : In which of the following instances would the independence of the CPA not be considered to be impaired? The CPA has been retained as the auditor of a brokerage firm a. Which owes the CPA audit ... . Which owes the CPA audit fees for the current year services and just filed a petition for bankruptcy
Last Answer : Which owes the CPA audit fees for the current year services and justfiled a petition for bankruptcy
Description : Karan bought 1000 share of ABC Limited at Rs.910 through his broker excluding brokerage and taxes. However, the current market price of that share is Rs.915. Here, the amount of Rs.915 reflects ____________. a) value of share b) cost of investment c) investment value d) price of transaction
Last Answer : a) value of share