GLO-BUS Quiz 1 Questions and Correct Correct Answerwers Updated Version 2023 A camera-maker's price competitiveness in a particular geographic region is determined by - Correct Answer whether its price is above or below the average price of all companies competing in that geographic region.
A company's managers should give serious consideration to changing from a low- cost/low price strategy for multi-featured cameras to a different strategy in the multi- featured camera market when - Correct Answer so many other rival companies are marketing low-priced multi-featured cameras that intensive competition in the low-end multi-featured camera segment makes it quite difficult for every company competing for buyers of low-priced multi-featured cameras to capture big enough revenues and global market share to earn attractively large profits selling low-priced multi-featured cameras.
According to explanations provided on the Help screens for the Production Cost Report, if a company pays a PAT member a base wage of $18,000, a $60 quarterly bonus for perfect attendance, and annual fringe benefits of $2,500, if a PAT is paid a $1 incentive bonus per camera assembled, and if a PAT assembles 12,000 cameras per year (or 3000 cameras per quarter), than the annual compensation cost of a single PAT member and a fully-staffed PAT would be - Correct Answer $23,740 and $94,960.
According to the depreciation rates used by the company and described in the Production Cost Report, if a company adds 50 new workstations at a cost of $75,000 each and also spends $10 million for an addition to its assembly plant to accommodate the new workstations, than its annual depreciation costs will rise by - Correct Answer
$550,000.
Assume a company's Income Statement for a given period has the following entries: Sales Revenues (50,000), Production Costs (26,500), Delivery Costs (1,600), Marketing Costs (8,500), Administrative Expenses (3,000), Operating Profit (13,400), Net Interest (750), Income Before Taxes (12,650), Taxes (3,795), Net Income (8,855). Based on the above income statement data, the company's operating profit margin and net profit margin are - Correct Answer 26.8% and 17.7%.
Assume a company's Income Statement for a given quarter is as follows: Sales
Revenues (50,000), Production Costs (26,500), Delivery Costs (1,600), Marketing Costs (8,500), Administrative Expenses (2,000), Operating Profit (14,400), Net Interest (750), Income Before Taxes (13,650), Taxes (4,095), Net Income (9,555). Based on the above data, which of the following statements is false? - Correct Answer Delivery costs are 2.8% of revenues and represent the company's smallest cost component.
Consumer purchases of digital cameras are seasonal with - Correct Answer about 20% of consumer demand coming in quarter 1, 20% in quarter 2, 20% in quarter 3 and 40% in quarter 4.
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Given the following Financial Statement Data:
Sales Revenues (50,000), Operating Profit (14,400), Net Income (9,555), Total Current Assets (70,000), Total Assets (159,000), Total Current Liabilities (26,000), L-T Debt (43,000), Total Equity (91,400), Depreciation (4,000), Dividend Payments (2,250).Based on the above figures, the company's capital structure (defined as the sum of total debt outstanding and total stockholder's equity) consists of what percentages of debt and equity? (The percentages of total capital invested that are debt-financed and equity- financed are among the factors used to determine a company's credit rating, as explained in the Help section for the Comparative Financial Performances presented on p.7 of the GLO-BUS Statistical Review.) - Correct Answer 32% debt and 685 equity or
32:68.
If a company earns net income of $40 million in Year 8, has 10 million shares of stock, pays a dividend of $1,50 per share, and has annual interest costs of $15 million, then - Correct Answer the company's EPS for Year 8 would be $4.00 and its retaining earnings for Year 8 would be $25 million (net income of $40 million less dividend payments of $15 million).
If a company is being out-competed by various rival companies in the Europe-Africa market for multi-featured cameras and consequently has an unappealing low sales volume and market share in Europe-Africa, then company managers should - Correct Answer explore correcting most or all of the company's competitive weaknesses (shown at the bottom of the latest Competitive Intelligence Report for the Europe-Africa region); in addition, managers should initiate actions that they believe will result in the company having at least two important competitive strengths vis-a-vis its Europe-Africa rivals in the upcoming decision round.
In which one of the following situations/circumstances is it most reasonable for a company to consider shifting away from pursuit of a strategy to strongly differentiate its multi-featured cameras from the multi-featured camera brands of rival companies and sell them at a premium price? - Correct Answer When the market for high-end multi- featured cameras is crowded with companies using more or less copycat differentiation strategies to try to out-compete one another, thus making it difficult for any of these companies to earn attractively high profits.
One of the benefits of pursuing a strategy of social responsibility and corporate citizenship is - Correct Answer an enhanced image rating, provided company spending for socially responsible activities is meaningful and is sustained over a multi-year period.
The company maintains a production facility in - Correct Answer Taiwan.
The company's present assembly plant has sufficient space for - Correct Answer up to 150 workstations, without expanding the size of the plant.
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