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Proteins: Structure, Function, and Bio..

Biology

3/16/13

Opening Offer: $2.00
Posted by: excellent pupil
Date Posted: 3/16/13 5:00 AM
Due Date: 12/31/69

PROTEINS : Structure, Function, and Bioinformatics publishes original reports of significant experimental and analytic research in all areas of protein research: structure, function, computation, genetics, and design.PROTEINS : Structure, Function, and Bioinformatics publishes original reports of significant experimental and analytic research in all areas of protein research: structure, function, computation, genetics, and design. 

MA 170 Финал 1

Mathematics

3/14/13

Opening Offer: $15.00
Posted by: prusigor23
Date Posted: 3/14/13 11:06 PM
Due Date: 3/14/13

1. State whether the statements are true or false: AcA

A) True   B) False

 

2. Fill in the missing value. Assume simple interest.

principal $19,582

interest rate 4%

time ________

simple interest $2,349.84

A) time 3 years   B) time 4 years    C) time 2 years

 

3. Using the combination formula complete the following: How many combinations of two letters are possible from the letters U, A, and X?

A) 3    B) 5    C) 9

 

4. Find the probability. Write your answer as a percent rounded to the nearest whole percent: A number from 8 to 16 is drawn at random. P(12).

A) 11%    B) 13%     C) 15%

 

5. Evaluate the expression: 2 • 7!

A) 10,080    B) 10,280    C) 10,000

 

6. If A and B are independent events, P(A)=.4, and P(B)=.6 find P (A u B)

A) 0.76     B) 0.076     C) 0.0076

 

7. A number from 15 to 26 is drawn at random.P(24)Express the probability as a percent. Round to the nearest percent.

A) 8%     B) 9%      C) 10%

 

8.Evaluate the expression: 9!

A) 362880    B) 362800

 

9.Determine whether the events A and B are independent P(A)=.6, P(B)=.8, P(A n B)=.2

A) Independent    B) Not Independent

 

10.Evaluate: 3!

A) 6    B) 3     C) 1

 

11.Evaluate the expression: C(9,3)

A) 84     B) 48      C) 27

 

12.Fill in the missing value. Assume simple interest.

principal $87,698

interest rate ________

time 1 year

simple interest $6,138.86

 

A) interest rate 7%     B) interest rate 8%     C) interest rate 10%

 

13.A jar contains 21 pink and 26 navy marbles. A marble is drawn at random.P(navy)Express the probability as a decimal. Round to the nearest hundredth.

A) 0.55     B) 0.055     C) 0.0055

 

14.Find the probability. Assume that the spinner is separated into equal sections: You flip a coin and toss a 1-6 number cube. P(3 and heads)

A) 1/12 or 0.083     B) 1/6 or 0.167     C) 1/8 or 0.125

 

15. State whether the statements are true or false: {0}=0

A) True     B) False

 

16.Fill in the missing value. Assume simple interest.

principal $400,007

interest rate 13%

time 2 years

simple interest ________

A) simple interest $105,001.82    B) simple interest $104,001.82    C) simple interest $104,003.82

 

17.State whether the statements are true or false: 0eA

A) True     B) False

 

18.Find the probability: A number from 10 to 22 is drawn at random. P(an odd number) Express the probability as a decimal. Round to the nearest hundredth.

A) 0.46     B) 0.17     C) 0.75

 

19.Fill in the missing value. Assume simple interest. principal ________ interest rate 3% time 1 year simple interest $2,472.57

A) principal $82,419    B) principal $85,419    C) principal $822,419

 

20.There were 13,249 weddings in Springs City last year. According to state records, notaries public performed 17% of the weddings. How many weddings were not performed by notaries public?

A) 1099    B) 10994    C) 10997

 

21. Let A and B be two events in a sample space S such that:

(P(A)=.6,  P(B)=.5, and P(A n B).2 find P(AB)     

A) 2/5    B) 5/2

 

22.If A and B are independent events, P(A)=.4, and P(B)=.6 find P(A n B)

A) 0.24    B) 0.024    C) 0.0024

 

23.Evaluate the expression: 3•5!

A) 360   B) 120    C)15

 

24.Find the probability. Write your answer as a fraction in simplest form: You roll a number cube numbered from 1 to 6. P(1).

A) 1/6    B) 6    C) 1/3

 

25.A jar contains 25 green, 19 white, 6 pink, and 21 orange marbles. A marble is drawn at random.P(white, green, or pink)Express the probability as a fraction.

A) 50/71     B) 71/50      C) 5/7

 

26.Evaluate the expression: 6!+4!

A) 744     B) 704     C) 720

 

27.Determine whether the events A and B are independent P(A)=.3, P(B)=.6, P(A n B)=.18

A) Independent     B) Not Independent

 

28.Evaluate the expression: P(5,5)

A) 120    B) 230    C) 25

 

29.Evaluate: 5!

A) 120    B) 25    C) 5

 

30.Evaluate the expression: 5!-3!

A) 114    B) 2    C) 8

 

bacterium Bartonella

Biology

3/14/13

Opening Offer: $2.00
Posted by: excellent pupil
Date Posted: 3/14/13 1:47 PM
Due Date: 12/30/13

Considered a bacterium Bartonella plague of the 21st century?Considered a bacterium Bartonella plague of the 21st century?

 

Nature Geoscience

Earth Science

3/14/13

Opening Offer: $3.00
Posted by: excellent pupil
Date Posted: 3/14/13 1:23 PM
Due Date: 12/30/13

that examines the science of the earththat examines the science of the earth?

Viruses

Biology

3/14/13

Opening Offer: $2.50
Posted by: excellent pupil
Date Posted: 3/14/13 9:19 AM
Due Date: 12/31/69

A virus is a small parasite that cannot reproduce by itself. Once it infects a susceptible cell, however, a virus can direct the cell machinery to produce more viruses. Most viruses have either RNA or DNA as their genetic material. The nucleic acid may be single- or double-stranded. The entire infectious virus particle, called a virion, consists of the nucleic acid and an outer shell of protein. The simplest viruses contain only enough RNA or DNA to encode four proteins. The most complex can encode 100 – 200 proteins.

technology of the 21st century

Computers and Technology

3/14/13

Opening Offer: $2.75
Posted by: excellent pupil
Date Posted: 3/14/13 8:32 AM
Due Date: 12/30/13

Promises and dangers,dynamic future.Promises and dangers,dynamic future.Promises and dangers,dynamic future.Promises and dangers,dynamic future.

eco 550

Business / Economics

3/11/13

Opening Offer: $2.00
Posted by: educate1921
Date Posted: 3/11/13 7:33 PM
Due Date: 3/11/13

Provide a cost-benefit analysis for a company which has to decide whether to hire more staff or hire temporary workers to meet production.schedules. Determine how managers would use your cost-benefit analysis to make this decision.

Conduct a cost-benefit analysis of obtaining a graduate degree. Assess both the short-term and the long-term costs and benefits to determine why some people obtain the extra education while others do not.

Anthropology

Humanities / Liberal Arts

3/11/13

Opening Offer: $2.00
Posted by: havensd
Date Posted: 3/11/13 11:56 AM
Due Date: 3/11/13

Nowak and Laird's Applying Anthropology 6.2 box, in Cultural Anthropology, proposes the following question::
The familiar saying "never do business with family" advises against the practices used in many of the chiefdom societies discussed in this chapter. This old saying implies that doing business with family will create conflict, whereas chiefdom societies welcome and encourage such close-knit economic exchanges as a way of preventing conflict. In fact, in an interesting article on family businesses, Bertrand and Schoar comment on how cultures based on strong family ties can have a negative impact on economic development. The reasoning is that the more we are taught to count on our kinship and family ties, the less likely we are to trust those outside our family networks, which greatly prohibits the development of larger economic institutions...

Consider both examples and create an argument for or against mixing business with family. When responding to this question, be sure to engage in cross-cultural comparison, taking into consideration variation in subsistence systems, descent systems, mobility, and any other factors you consider pertinent. Draw examples from the ethnographic record, your own experience, and the experience of others with whom you are familiar.

Your initial response should be at least 150 words in length. Please support your claims with examples from the text, recommended material, and/or scholarly articles. Respond to at least two of your classmates' posts by Day 7.

Anthropology

Humanities / Liberal Arts

3/11/13

Opening Offer: $2.00
Posted by: havensd
Date Posted: 3/11/13 11:54 AM
Due Date: 3/11/13

Watch Blood Bonds, available in the Films On Demand database, in the Ashford Online Library. Describe the correlation between arranged marriage, economic exchanges surrounding marriage (bridewealth, bride service, dowry, etc.), status of women, family pressures, and other factors you can think of and the stability of marriage. Based on your reading of the textbook and the film, what are the disadvantages of different forms of marriages? Do you think they can be as successful as marriages of choice? Which form of marriage do you have the hardest time understanding?

Reflect on marriage and divorce in current North American societies. What factors contribute to the stability of marriages in our culture? What factors contribute to stability of marriage in the cultures shown in the film? And lastly, what factors of the cultures in the film could contribute to the stability of marriage in our culture? And vise versa?

Your initial response should be at least 150 words in length. Please support your claims with examples from the required resources. Respond to at least two of your classmates' posts by Day 7.

LDR 531 Final Exam

Business / Economics

3/10/13

Opening Offer: $25.00
Posted by: orchid
Date Posted: 3/10/13 1:58 PM
Due Date: 3/9/13

1) Which of the following is best defined as a consciously coordinated social unit, composed of two or more people, which functions on a relatively continuous basis to achieve a common goal or set of goals?


a. party

b. unit

c. team

d. community

e. organization

2) Over the past 2 decades, business schools have added required courses on organizational design to many of their curricula. Why have they done this?

a. Managers no longer need technical skills in subjects such as economics and accounting to succeed.

b. There is an increased emphasis in controlling employee behavior in the workplace.

c. Managers need to understand human behavior if they are to be effective.

d. These skills enable managers to effectively lead human resources departments.

e. A manager with good people skills can help create a pleasant workplace.

3) Robert Katz identified three essential skills that managers must have to reach their goals. What are these skills?

a. technical, decisional and interpersonal

b. technical, human, and conceptual

c. interpersonal, informational and decisional

d. conceptual, communication and networking

e. human, informational and communication

4) __________ is a field of study that investigates the effect that individuals, groups, and structures have on behavior within organizations for the purpose of applying such knowledge toward improving an organization's effectiveness.

Organizational developmentHuman
Resources Managementc. Organizational behaviorPeople managementCorporate strategy

5) What do the fundamental consistencies underlying the behavior of all individuals enable researchers to do?

a. observe human behavior

b. systematize human behavior

c. research human behavior

d. predict human behavior

e. detect human behavior

6) Which of the following is a generic term that covers a broad range of feelings that people experience?

a. Affect
 emotions
Moodse
Motional  labor
cognition

7) What term is used for intense feelings that are directed at someone or something?

affect
cognition
moodsthoughtse.
 emotions

8) If personality characteristics were completely dictated by __________, they would be fixed at

birth and no amount of experience could alter them.

job satisfactionb.
 Heredity
Environment
situations
religion

9) Which of the following are classifications on the Myers-Briggs Type Indicator?

a. extroverted/introverted

b. sensing/intuitive

c. perceiving/judging

d. independent/dependent

e. thinking/feeling

10) Maria is dissatisfied with the way that her manager treats her. She has quit her job and found a new position with another firm. How has she expressed her dissatisfaction?

a. exit

b. voice

c. loyalty

d. neglect

e. social voice

11) You quietly continue to do your work when you know things will not improve. This is what type of response to dissatisfaction?

a. exit

b. voice

c. loyalty

d. neglect

e. social voice

12) A group

a. generates positive synergy through coordinated effort

b. generates greater outputs with no increase in inputs

c. is two or more individuals interacting and interdependent

d. engages in collective work that requires joint effort

13) __________ results in a level of performance that is greater than the sum of the individual input.

a. Synergy

b. Enthusiasm

c. Energy

d. Initiative

e. Inversion

14) What happens in the second stage of Tuckman's five stage model of group development?

a. Close relationships are developed.

b. The group demonstrates cohesiveness.

c. Intragroup conflict often occurs.

d. Groups disband.

15) Zach is devout and very active in his church. He is also a very dedicated employee. His manager offers him a promotion, but the new role will require him to work Sundays. Zach would like the promotion, but realizes that it would force him to miss some church activities. It is likely that Zach is experiencing which of the following:

a. role conflict

b. role expectation

c. role perception

d. psychological conflict

16) Which role focuses on bringing about order and consistency by drawing up formal plans?

leadershipb
. management
task structureinitiating
structurenone of the above

17) Which statement regarding leadership is true?

All leaders are managers.
Formal rights enable managers to lead effectively
.All managers are leaders.
All leaders are hierarchically superior to followers.
e. Nonsanctioned leadership is as important as or more important than formal influence.

18) What are three situational criteria identified in the Fiedler model?

a. job requirements, position power, and leadership ability

b. charisma, influence, and leader-member relations

c. leader-member relations, task structure, and position power

d. task structure, leadership ability, and group conflict

e. emotional intelligence, group orientation, and employee status

19) The reconceptualization of the contingency model by Garcia and Fiedler is called _____ theory.

a. situational

b. cognitive resource

c. evaluative

d. leadership recognition

e. cognitive dissonance

20) Which path-goal leadership style leads to greater satisfaction when tasks are ambiguous or stressful?

a. Directive
supportive
participativemixedreactive

21) According the Path-Goal Theory, what leader is friendly and shows concern for the needs of followers?

the achievement-oriented leaderthe
 directive leaderthe laissez-faire
 leaderthe participative leadere.
 the supportive leader

22) Phrases such as "more cultural diversity," "many new entrants with inadequate skills," and "increase in professionals" are all examples of what force for change?

a. technology

b. world politics

c. nature of the work force

d. social trends

23) What is a goal of planned change?

a. to change the forces of change

b. to alter the agents of change

c. to change employees' responsibilities

d. to improve the ability to adapt to the environment

e. to alter the employees' environment

24) Using covert influence to overcome resistance to change is called what?

a. negotiation

b. cooptation

c. education

d. coercion

e. manipulation

25) If individuals resisting change are included in making change decisions in an attempt to gain their support, what is this approach is called?

a. cooptation

b. exploitation

c. manipulation

d. coercion

e. education

26) Which of the following is a characteristic of organizational control?

a. Formality orientation

b. Decision orientation

c. Team orientation

d. Managerial orientation

27) What term describes the key characteristic of organizational control that addresses the degree to which employees are expected to exhibit precision?

a. accuracy orientation

b. accountability

c. attention to detail

d. stability

e. reactivity

28) Power is

a. a means for leaders to achieve goals

b. defined by leaders' hopes and aspirations

c. a goal in and of itself

d. not an influence on leaders' goals

29) Leaders achieve goals, and power is

a. defined by leaders' hopes and aspirations

b. usually used by poor leaders

c. a means of achieving goals

d. a goal in and of itself

e. a strong influence on leaders' goals

30) The most important aspect of power is probably that it _____.

a. is needed to get things done in an organization

b. is a function of dependency

c. tends to corrupt people

d. is counterproductive

e. involves control

HRM 531 Final Exam

Business / Economics

3/10/13

Opening Offer: $25.00
Posted by: orchid
Date Posted: 3/10/13 1:55 PM
Due Date: 3/9/13

1) Distrust, disrespect, and animosity pertain to which component of indirect costs associated with mismanaged organizational stress?

A. Quality of work relations
B. Participation and membership
C. Performance on the job
D. Communication breakdowns
2) Inventory shrinkages and accidents pertain to which component of direct costs associated with mismanaged organizational stress?
A. Employee conflict
B. Performance on the job
C. Loss of vitality
D. Communication breakdowns
3) Thousands of equal-pay lawsuits have been filed, predominantly by ___________ since the Equal Pay Act of 1963 was passed
A. women
B. African Americans
C. the elderly
D. Americans with disabilities
4) What term refers to those actions appropriate to overcome the effects of past or present policies, practices, or other barriers to equal employment opportunity?
A. Reparation
B. Emancipation
C. Desegregation
D. Affirmative action
5) In the employment context, _______________ can be viewed broadly as giving an unfair advantage or disadvantage to the members of a particular group in comparison with the members of other groups
A. ethnocentrism
B. discrimination
C. seniority system
D. race norming
6) Thousands of equal-pay suits have been filed, predominantly by ___________ since the Equal Pay Act of 1963 was passed
A. women
B. African Americans
C. the elderly
D. Americans with disabilities
7) Which of the following observations is correct?
A. Diversity is problem focused, and affirmative action is opportunity focused
B. Diversity is government initiated, and affirmative action is voluntary
C. Diversity is proactive, and affirmative action is reactive
D. Diversity is quantitative, and affirmative action is qualitative
8) Which of the following would you associate with managing diversity?
A. Government initiated
B. Assumes integration
C. Internally focused
D. Quantitative
9) "To be the world's best quick-service restaurant" is an example of what?
A. Organizational charter
B. Standard operating procedure
C. Code of ethics
D. Vision statement
10) _________ is a job analysis method that lists tasks or behaviors and involves workers rating each task or behavior in terms of whether or not it is performed. If the task is performed, workers also rate the frequency, importance, level of difficulty, and relationship to overall performance
A. Job performance
B. Structured questionnaires
C. Interviews
D. Critical incidents
11) Recruitment begins by specifying _____, which are the typical results of job analysis and workforce planning activities
A. human resource requirements
B. strategic imperatives
C. succession plans
D. affirmative action candidates
12) The step following recruitment is _____, which is basically a rapid, rough selection process
A. an orientation
B. an initial screening
C. a suspension
D. a workforce plan
13) During the _____ stage, it is most important to select the managers who can develop stable management systems to preserve the gains achieved during the embryonic stage
A. mature
B. high-growth
C. aging
D. embryonic
14) Increasing an individual's employability outside the company simultaneously increases his or her job security and desire to stay with the current employer. What is this known as?
A. Training paradox
B. Pygmalion effect
C. Distributed practice
D. Massed practice
15) Which is a characteristic of the most effective training practices?
A. Training starts at the bottom of the organization
B. Training is part of the corporate culture
C. Training is evaluated by checking participant reactions
D. Little time is spent assessing training needs
16) Which analysis is helpful in determining the special needs of a particular group, such as older workers, women, or managers at different levels?
A. Individual
B. Operations
C. Demographic
D. Organization
17) Providing adequate resources to get a job done right and on time, and paying careful attention to selecting employees, are parts of
A. employee welfare
B. grievance management
C. performance appraisal
D. performance facilitation
18) This can be thought of as a compass that indicates a person's actual direction as well as a person's desired direction.
A. Management by objectives
B. Forced distribution
C. Central tendency
D. Performance management
19) What would you call a meeting that is typically done once a year to identify and discuss job-relevant strengths and weaknesses of individuals or work teams?
A. performance appraisal
B. performance facilitation
C. performance encouragement
D. performance standard
20) When managing careers, what should organizations do?
A. Plan for shorter employment relationships
B. Focus primarily on employee needs and aspirations
C. Allow employees to structure work assignments
D. Focus on and recognize career stages that employees go through
21) A sequence of positions occupied by a person during the course of a lifetime is characteristic of what type of career?
A. Subjective
B. Objective
C. Specific
D. General
22) In the new world of career management, the primary goal is to provide which of the following for employees?
A. Rising aspirations
B. Executive ranking
C. Psychological success
D. Time off when they need it
23) At a broad level, _____ includes anything an employee values and desires that an employer is able and willing to offer in exchange for employee contributions
A. a competency-based pay system
B. an employee stock ownership plan
C. an organizational reward system
D. a merit-pay method
24) This benefit, tied mostly to profitability and promising better job security, but not guaranteeing it, is at the center of the evolving bonus system
A. Contribution-based pay
B. Competency-based pay
C. Skill-based pay
D. Flexible pay
25) Financial rewards include direct payments plus indirect payments in the form of what?
A. Individual equity
B. Corporate compensation
C. Spot awards
D. Employee benefits
26) Which law offers full coverage for retirees, dependent survivors, and disabled persons insured by 40 quarters of payroll taxes on their past earnings or earnings of heads of households?
A. Federal Unemployment Tax Act
B. Social Security Act
C. Workers' compensation
D. Employee Retirement Income Security Act
27) Plans are known as _____ when the employees share in the cost of the premiums
A. share-based
B. contributory
C. distributive
D. peer participating
28) Which type of justice refers to the quality of interpersonal treatment that employees receive in their everyday work?
A. Interactional
B. Informational
C. Distributive
D. Blind
29) Procedural justice affects citizenship behaviors by influencing employees' perceptions of _____, the extent to which the organization values employees' general contributions and cares for their well being.
A. due process
B. management accessibility
C. indirect compensation
D. organizational support
30) When companies discover they can communicate better with their customers through employees who are similar to their customers, those companies then realize they have increased their _____ diversity.
A. primary
B. secondary
C. internal
D. external

MKT 421 - Sample questions

Business / Economics

3/10/13

Opening Offer: $18.00
Posted by: orchid
Date Posted: 3/10/13 1:31 PM
Due Date: 3/9/13

1) Big Fizz Co., a manufacturer of cola-flavored drinks, wants to add packaged fruit juices to its existing product line. Big Fizz must make some decisions regarding packaging and branding the fruit juices. These decisions would fall under which variable of the marketing mix?

A. Product

B. Place

C. Promotion

D. Price

2) Hewlett-Packard sells personal computers through specialty computer stores, electronics superstores, and its own Internet site. What is the marketing mix variable that is being considered here?

A. Price

B. Promotion

C. Product

D. Place

3) Marketing strategy planners should recognize that

A. target markets should not be large and spread out

B. mass marketing is often very effective and desirable

C. large firms like General Electric, Target, and Procter & Gamble are too large to aim at clearly defined markets

D. target marketing is not limited to small market segments

4) Target marketing, in contrast to mass marketing,

A. is limited to small market segments

B. assumes that all customers are basically the same

C. ignores markets that are large and spread out

D. focuses on fairly homogeneous market segments

5) The process of naming broad product-markets and then dividing them in order to select target markets and develop suitable

A. market penetration

B. market segmentation

C. market development

D. market research

6) ______________ is the process of naming broad product-markets and then segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

A. Market positioning

B. Market segmentation

C. Mass marketing

D. Diversification

7) Marketing research which seeks structured responses that can be summarized is called

A. focus group research

B. quantitative research

C. qualitative research

D. situation analysis research

8) One of the major disadvantages of the focus group interview approach is that

A. ideas generated by the group cannot be tested later with other research

B. it is difficult to measure the results objectively

C. it is difficult to get in-depth information about the research topic

D. there is no interviewer, so the research questions may not be answered

9) When focus group interviews are used in marketing,

A. each person in the group answers the same questionnaire, to focus the discussion

B. the typical group size is 15 to 20 typical consumers whether online or off-line

C. it is primarily as a follow-up to more quantitative research

D. the research conclusions will vary depending on who watches the interview whether online or off-line

10) Focus groups

A. are usually composed of 10 to 15 people as participants

B. yield results that are largely dependent on the viewpoint of the researcher

C. always do a good job of representing the broader target market

D. have a low cost per participant

11) A small manufacturing firm has just experienced a rapid drop in sales. The marketing manager thinks that he knows what the problem is and has been carefully analyzing secondary data to check his thinking. His next step should be to

A. conduct an experiment

B. develop a formal research project to gather primary data

C. conduct informal discussion with outsiders, including intermediaries, to see if he has correctly defined the problem

D. develop a hypothesis and predict the future behavior of sales

12) The marketing manager at Massimino & McCarthy, a chain of retail stores that sells men's clothing, is reviewing marketing research data to try to determine if changes in marketing strategy are needed. Which of the following sources of data would be a secondary data source?

A. Looking through the company's marketing information system to see past sales trends

B. Reviewing videotapes of a recent focus group

C. Making phone calls to some of the best customers to learn their interest in a new line of clothing

D. Spending time in stores observing customers' behavior

13) Which of the following statements about consumer products is true?

A. Convenience products are those that customers want to buy at the lowest possible price.

B. Shopping products are those products for which customers usually want to use routinized buying behavior.

C. Specialty products are those that customers usually are least willing to search for.

D. Unsought products are not shopped for at all.

14) The attitudes and behavior patterns of consumers making a purchasing decision are part of the

A. political environment

B. social and cultural environment

C. competitive environment

D. firm's resources and objectives

15) The observing method in marketing research

A. uses personal interviews

B. may require customers to change their normal shopping behavior

C. is used to gather data without consumers being influenced by the process

D. is not suitable for obtaining primary data

16) The first step in market segmentation should be

A. deciding what new product you could develop

B. evaluating what segments you currently serve

C. finding a demographic group likely to use your products

D. defining some broad product-markets where you may be able to operate profitably

17) The product life cycle

A. describes the stages a new product idea goes through from beginning to end

B. has three major stages

C. applies to categories or types of products as opposed to brands

D. shows that sales and profits tend to move together over time

18) Which of the following is one of the product life cycle stages?

A. Market analysis

B. Market growth

C. Market feedback

D. Market research

19) While watching a television program, Liza gets a phone call just as a commercial is starting. She presses the mute button on the television's remote control and takes the call, so she pays no attention to the commercial. In terms of the communication process, the telephone call is an example of what?

A. Encoding

B. Noise

C. Decoding

D. Feedback

20) Which of the following functions are performed by wholesalers in the channel of distribution?

A. Providing information to retailers

B. Placing radio advertisements for retailers

C. Placing newspaper advertisements for retailers

D. Providing goals for retailers

21) Typically the ______________ and the marketing manager are responsible for building good distribution channels and implementing place policies.

A. public relations manager

B. sales manager

C. advertising manager

D. human resources manager

22) SGCA is having a sales contest to encourage retailers to quickly reduce the inventory of SuperGamer computers. Retailers with the highest sales during the next month win an expense paid trip to a special dealer meeting at a resort in Hawaii. This is

A. probably illegal because it might encourage price competition among retailers

B. an example of cooperative advertising

C. the type of promotion that continues to impact sales even after the promotion is over

D. an example of a manufacturer using trade sales promotion in the channel

23) Advertising allowances

A. are incentive monies given to firms further along in the channel to encourage them to advertise or otherwise promote the firm's products

B. involve intermediaries and producers sharing in the cost of ads

C. allow for coordination and integration of ad messages in the channel

D. set the allowance amount as a percent of the retailer's actual purchases

24) Price reductions given to channel members to encourage them to promote or otherwise promote a firm's products locally are

A. quantity discounts

B. brokerage allowances

C. push money allowances

D. advertising allowances

25) A producer using very aggressive promotion to get final consumers to ask intermediaries for a new product has

A. a pulling policy

B. a target marketing policy

C. a selective distribution policy

D. a pushing policy

26) Nantucket Hammocks, Inc., uses dealer incentives, discounts, and sales contests in order to encourage retailers to give special attention to selling its products. Nantucket Hammocks is using

A. exclusive distribution

B. a corporate channel system

C. dual distribution

D. pushing

27) Quality Ceramic, Inc., (QCI) defined five submarkets within its broad product-market. To obtain some economies of scale, QCI decided NOT to offer each of the submarkets a different marketing mix. Instead, it selected two submarkets whose needs are fairly similar, and is counting on promotion and minor product differences to make its one basic marketing mix appeal to both submarkets. QCI is using the

A. combined target market approach

B. single target market approach

C. multiple target market approach

D. mass marketing approach

28) When segmenting broad product-markets, cost considerations tend

A. to encourage managers to disregard the criterion that a product-market segment should be substantial

B. to lead to more aggregating

C. to be unimportant as long as the segmenting dimensions are operational

D. to lead to a large number of small, but very homogeneous, product-market segments

29) ______________ focuses on introducing new products to existing markets.

A. Market development

B. Product development

C. Diversification

D. Market penetration

30) When a company grows globally by introducing existing product lines to new markets, this is an example of what?

A. Market development

B. Product development

C. Diversification

D. Market penetration

QNT-351-Final-Exam

Business / Economics

3/10/13

Opening Offer: $27.00
Posted by: orchid
Date Posted: 3/10/13 1:28 PM
Due Date: 3/9/13

1) The main purpose of descriptive statistics is to

A. summarize data in a useful and informative manner

B. make inferences about a population

C. determine if the data adequately represents the population

D. gather or collect data

2) The general process of gathering, organizing, summarizing, analyzing, and interpreting data is called

A. statistics

B. descriptive statistics

C. inferential statistics

D. levels of measurement

3) The performance of personal and business investments is measured as a percentage, return on investment. What type of variable is return on investment?

A. Qualitative

B. Continuous

C. Attribute

D. Discrete

4) What type of variable is the number of robberies reported in your city?

A. Attribute

B. Continuous

C. Discrete

D. Qualitative

5) What level of measurement is the number of auto accidents reported in a given month?

A. Nominal

B. Ordinal

C. Interval

D. Ratio

6) The names of the positions in a corporation, such as chief operating officer or controller, are examples of what level of measurement?

A. Nominal

B. Ordinal

C. Interval

D. Ratio

7) Shoe sizes, such as 7B, 10D, and 12EEE, are examples of what level of measurement?

A. Nominal

B. Ordinal

C. Interval

D. Ratio

8) Monthly commissions of first-year insurance brokers are $1,270, $1,310, $1,680, $1,380, $1,410, $1,570, $1,180, and $1,420. These figures are referred to as

A. a histogram

B. raw data

C. frequency distribution

D. frequency polygon

9) A small sample of computer operators shows monthly incomes of $1,950, $1,775, $2,060, $1,840, $1,795, $1,890, $1,925, and $1,810. What are these ungrouped numbers called?

A. Histogram

B. Class limits

C. Class frequencies

D. Raw data

10) The sum of the deviations of each data value from this measure of central location will always be 0

A. Mode

B. Mean

C. Median

D. Standard deviation

11) For any data set, which measures of central location have only one value?

A. Mode and median

B. Mode and mean

C. Mode and standard deviation

D. Mean and median

12) A sample of single persons receiving social security payments revealed these monthly benefits: $826, $699, $1,087, $880, $839, and $965. How many observations are below the median?

A. 0

B. 1

C. 2

D. 3

13) A dot plot shows

A. the general shape of a distribution

B. the mean, median, and mode

C. the relationship between two variables

D. the interquartile range

14) The test scores for a class of 147 students are computed. What is the location of the test score associated with the third quartile?

A. 111

B. 37

C. 74

D. 75%

15) The National Center for Health Statistics reported that of every 883 deaths in recent years, 24 resulted from an automobile accident, 182 from cancer, and 333 from heart disease. Using the relative frequency approach, what is the probability that a particular death is due to an automobile accident?

A. 24/883 or 0.027

B. 539/883 or 0.610

C. 24/333 or 0.072

D. 182/883 or 0.206

16) If two events A and B are mutually exclusive, what does the special rule of addition state?

A. P(A or B) = P(A) + P(B)

B. P(A and B) = P(A) + P(B)

C. P(A and/or B) = P(A) + P(B)

D. P(A or B) = P(A) - P(B)

17) A listing of all possible outcomes of an experiment and their corresponding probability of occurrence is called a

A. random variable

B. probability distribution

C. subjective probability

D. frequency distribution

18) The shape of any uniform probability distribution is

A. negatively skewed

B. positively skewed

C. rectangular

D. bell shaped

19) The mean of any uniform probability distribution is

A. (b - a)/2

B. (a + b)/2

C. Σ x/ η

D. nπ

20) For the normal distribution, the mean plus and minus 1.96 standard deviations will include about what percent of the observations?

A. 50%

B. 99.7%

C. 95%

D. 68%

21) For a standard normal distribution, what is the probability that z is greater than 1.75?

A. 0.0401

B. 0.0459

C. 0.4599

D. 0.9599

22) A null hypothesis makes a claim about a

A. A null hypothesis makes a claim about a

B. sample statistic

C. sample mean

D. Type II error

23) What is the level of significance?

A. Probability of a Type II error

B. Probability of a Type I error

C. z-value of 1.96

D. Beta error

24) Suppose we test the difference between two proportions at the 0.05 level of significance. If the computed z is -1.07, what is our decision?

A. Reject the null hypothesis

B. Do not reject the null hypothesis

C. Take a larger sample

D. Reserve judgment

25) Which of the following conditions must be met to conduct a test for the difference in two sample means?

A. Data must be at least of interval scale

B. Populations must be normal

C. Variances in the two populations must be equal

D. Data must be at least of interval scale and populations must be normal

26) Which of the following statements about the two sample sizes is NOT true? Assume the population standard deviations are equal.

A. Sample A = 11; sample B = 13

B. Sample A = 12; sample B = 14

C. Sample A = 13; sample B = 13

D. Sample A = 10; sample B = 16

27) What is the chart called when the paired data (the dependent and independent variables) are plotted?

A. Scatter diagram

B. Bar chart

C. Pie chart

D. Histogram

28) What is the variable used to predict the value of another called?

A. Independent variable

B. Dependent variable

C. Correlation variable

D. Variable of determination

29) Twenty randomly selected statistics students were given 15 multiple-choice questions and 15 open-ended questions, all on the same material. The professor was interested in determining on which type of questions the students scored higher. This experiment is an example of

A. a one sample test of means

B. a two sample test of means

C. a paired t-test

D. a test of proportions

30) The measurements of weight of 100 units of a product manufactured by two parallel processes have same mean but the standard of process A is 15 while that of B is 7. What can you conclude?

A. The weight of units in process A are grouped closer than in process B

B. The weight of units in process B are grouped closer than in process A

C. Both processes are out of control

D. More data is needed to draw a conclusion

FIN 370 Final Exam

Business / Economics

3/10/13

Opening Offer: $27.00
Posted by: orchid
Date Posted: 3/10/13 1:25 PM
Due Date: 3/9/13

1) The goal of the firm should be

A. maximization of profits

B. maximization of shareholder wealth

C. maximization of consumer satisfaction

D. maximization of sales

2) An example of a primary market transaction is

A. a new issue of common stock by AT&T

B. a sale of some outstanding common stock of AT&T

C. AT&T repurchasing its own stock from a stockholder

D. one stockholder selling shares of common stock to another individual

3) According to the agency problem, _________ represent the principals of a corporation.

A. shareholders

B. managers

C. employees

D. suppliers

4) Which of the following is a principle of basic financial management?

A. Risk/return tradeoff

B. Derivatives

C. Stock warrants

D. Profit is king

5) Another name for the acid test ratio is the

A. current ratio

B. quick ratio

C. inventory turnover ratio

D. average collection period

6) The accounting rate of return on stockholders' investments is measured by

A. return on assets

B. return on equity

C. operating income return on investment

D. realized rate of inflation

7) If you are an investor, which of the following would you prefer?

A. Earnings on funds invested compound annually

B. Earnings on funds invested compound daily

C. Earnings on funds invested would compound monthly

D. Earnings on funds invested would compound quarterly

8) The primary purpose of a cash budget is to

A. determine the level of investment in current and fixed assets

B. determine accounts payable

C. provide a detailed plan of future cash flows

D. determine the estimated income tax for the year

9) Which of the following is a non-cash expense?

A. Depreciation expenses

B. Interest expense

C. Packaging costs

D. Administrative salaries

10) The break-even model enables the manager of a firm to

A. calculate the minimum price of common stock for certain situations

B. set appropriate equilibrium thresholds

C. determine the quantity of output that must be sold to cover all operating costs

D. determine the optimal amount of debt financing to use

11) A zero-coupon bond

A. pays no interest

B. pays interest at a rate less than the market rate

C. is a junk bond

D. is sold at a deep discount at less than the par value

12) If you have $20,000 in an account earning 8% annually, what constant amount could you withdraw each year and have nothing remaining at the end of 5 years?

A. $3,525.62

B. $5,008.76

C. $3,408.88

D. $2,465.78

13) At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years?

A. 6%

B. 5%

C. 7%

D. 8%

14) The present value of a single future sum

A. increases as the number of discount periods increase

B. is generally larger than the future sum

C. depends upon the number of discount periods

D. increases as the discount rate increases

15) Which of the following is considered to be a spontaneous source of financing?

A. Operating leases

B. Accounts receivable

C. Inventory

D. Accounts payable

16) Compute the payback period for a project with the following cash flows, if the company's discount rate is 12%.

Initial outlay = $450

Cash flows:

Year 1 = $325

Year 2 = $65

Year 3 = $100

A. 3.43 years

B. 3.17 years

C. 2.88 years

D. 2.6 years

17) For the NPV criteria, a project is acceptable if the NPV is __________, while for the profitability index, a project is acceptable if the profitability index is __________.

A. less than zero, greater than the required return

B. greater than zero, greater than one

C. greater than one, greater than zero

D. greater than zero, less than one

18) Which of the following is considered to be a deficiency of the IRR?

A. It fails to properly rank capital projects.

B. It could produce more than one rate of return.

C. It fails to utilize the time value of money.

D. It is not useful in accounting for risk in capital budgeting.

19) The firm should accept independent projects if

A. the payback is less than the IRR

B. the profitability index is greater than 1.0

C. the IRR is positive

D. the NPV is greater than the discounted payback

20) The most expensive source of capital is

A. preferred stock

B. new common stock

C. debt

D. retained earnings

21) The cost associated with each additional dollar of financing for investment projects is

A. the incremental return

B. the marginal cost of capital

C. risk-free rate

D. beta

22) The XYZ Company is planning a $50 million expansion. The expansion is to be financed by selling $20 million in new debt and $30 million in new common stock. The before-tax required rate of return on debt is 9%, and the required rate of return on equity is 14%. If the company is in the 40% tax bracket, what is the marginal cost of capital?

A. 14.0%

B. 9.0%

C. 10.6%

D. 11.5%

23) Shawhan Supply plans to maintain its optimal capital structure of 30% debt, 20% preferred stock, and 50% common stock far into the future. The required return on each component is: debt–10%; preferred stock–11%; and common stock–18%. Assuming a 40% marginal tax rate, what after-tax rate of return must Shawhan Supply earn on its investments if the value of the firm is to remain unchanged?

A. 18.0%

B. 13.0%

C. 10.0%

D. 14.2%

24) Lever Brothers has a debt ratio (debt to assets) of 40%. Management is wondering if its current capital structure is too conservative. Lever Brothers' present EBIT is $3 million, and profits available to common shareholders are $1,560,000, with 342,857 shares of common stock outstanding. If the firm were to instead have a debt ratio of 60%, additional interest expense would cause profits available to stockholders to decline to $1,440,000, but only 228,571 common shares would be outstanding. What is the difference in EPS at a debt ratio of 60% versus 40%?

A. $1.75

B. $2.00

C. $3.25

D. $4.50

25) Zybeck Corp. projects operating income of $4 million next year. The firm's income tax rate is 40%. Zybeck presently has 750,000 shares of common stock which have a market value of $10 per share, no preferred stock, and no debt. The firm is considering two alternatives to finance a new product: (a) the issuance of $6 million of 10% bonds, or (b) the issuance of 60,000 new shares of common stock. If Zybeck issues common stock this year, what will be the projected EPS next year?

A. $4.94

B. $2.96

C. $5.33

D. $3.20

26) _________ risk is generally considered only a paper gain or loss.

A. Transaction

B. Translation

C. Economic

D. Financial

27) Capital markets in foreign countries

A. offer lower returns than those obtainable in the domestic capital markets

B. provide international diversification

C. in general are becoming less integrated due to the widespread availability of interest rate and currency swaps

D. have been getting smaller in the past decade

28) Buying and selling in more than one market to make a riskless profit is called

A. profit maximization

B. arbitrage

C. international trading

D. an efficient market

29) What keeps foreign exchange quotes in two different countries in line with each other?

A. Cross rates

B. Forward rates

C. Arbitrage

D. Spot rates

30) One reason for international investment is to reduce

A. portfolio risk

B. price-earnings (P/E) ratios

C. advantages in a foreign country

D. exchange rate risk

MKT 421 - Sample questions

Business / Economics

3/10/13

Opening Offer: $18.00
Posted by: rews
Date Posted: 3/10/13 12:55 PM
Due Date: 3/9/13

1) Big Fizz Co., a manufacturer of cola-flavored drinks, wants to add packaged fruit juices to its existing product line. Big Fizz must make some decisions regarding packaging and branding the fruit juices. These decisions would fall under which variable of the marketing mix?

A. Product

B. Place

C. Promotion

D. Price

2) Hewlett-Packard sells personal computers through specialty computer stores, electronics superstores, and its own Internet site. What is the marketing mix variable that is being considered here?

A. Price

B. Promotion

C. Product

D. Place

3) Marketing strategy planners should recognize that

A. target markets should not be large and spread out

B. mass marketing is often very effective and desirable

C. large firms like General Electric, Target, and Procter & Gamble are too large to aim at clearly defined markets

D. target marketing is not limited to small market segments

4) Target marketing, in contrast to mass marketing,

A. is limited to small market segments

B. assumes that all customers are basically the same

C. ignores markets that are large and spread out

D. focuses on fairly homogeneous market segments

5) The process of naming broad product-markets and then dividing them in order to select target markets and develop suitable

A. market penetration

B. market segmentation

C. market development

D. market research

6) ______________ is the process of naming broad product-markets and then segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

A. Market positioning

B. Market segmentation

C. Mass marketing

D. Diversification

7) Marketing research which seeks structured responses that can be summarized is called

A. focus group research

B. quantitative research

C. qualitative research

D. situation analysis research

8) One of the major disadvantages of the focus group interview approach is that

A. ideas generated by the group cannot be tested later with other research

B. it is difficult to measure the results objectively

C. it is difficult to get in-depth information about the research topic

D. there is no interviewer, so the research questions may not be answered

9) When focus group interviews are used in marketing,

A. each person in the group answers the same questionnaire, to focus the discussion

B. the typical group size is 15 to 20 typical consumers whether online or off-line

C. it is primarily as a follow-up to more quantitative research

D. the research conclusions will vary depending on who watches the interview whether online or off-line

10) Focus groups

A. are usually composed of 10 to 15 people as participants

B. yield results that are largely dependent on the viewpoint of the researcher

C. always do a good job of representing the broader target market

D. have a low cost per participant

11) A small manufacturing firm has just experienced a rapid drop in sales. The marketing manager thinks that he knows what the problem is and has been carefully analyzing secondary data to check his thinking. His next step should be to

A. conduct an experiment

B. develop a formal research project to gather primary data

C. conduct informal discussion with outsiders, including intermediaries, to see if he has correctly defined the problem

D. develop a hypothesis and predict the future behavior of sales

12) The marketing manager at Massimino & McCarthy, a chain of retail stores that sells men's clothing, is reviewing marketing research data to try to determine if changes in marketing strategy are needed. Which of the following sources of data would be a secondary data source?

A. Looking through the company's marketing information system to see past sales trends

B. Reviewing videotapes of a recent focus group

C. Making phone calls to some of the best customers to learn their interest in a new line of clothing

D. Spending time in stores observing customers' behavior

13) Which of the following statements about consumer products is true?

A. Convenience products are those that customers want to buy at the lowest possible price.

B. Shopping products are those products for which customers usually want to use routinized buying behavior.

C. Specialty products are those that customers usually are least willing to search for.

D. Unsought products are not shopped for at all.

14) The attitudes and behavior patterns of consumers making a purchasing decision are part of the

A. political environment

B. social and cultural environment

C. competitive environment

D. firm's resources and objectives

15) The observing method in marketing research

A. uses personal interviews

B. may require customers to change their normal shopping behavior

C. is used to gather data without consumers being influenced by the process

D. is not suitable for obtaining primary data

16) The first step in market segmentation should be

A. deciding what new product you could develop

B. evaluating what segments you currently serve

C. finding a demographic group likely to use your products

D. defining some broad product-markets where you may be able to operate profitably

17) The product life cycle

A. describes the stages a new product idea goes through from beginning to end

B. has three major stages

C. applies to categories or types of products as opposed to brands

D. shows that sales and profits tend to move together over time

18) Which of the following is one of the product life cycle stages?

A. Market analysis

B. Market growth

C. Market feedback

D. Market research

19) While watching a television program, Liza gets a phone call just as a commercial is starting. She presses the mute button on the television's remote control and takes the call, so she pays no attention to the commercial. In terms of the communication process, the telephone call is an example of what?

A. Encoding

B. Noise

C. Decoding

D. Feedback

20) Which of the following functions are performed by wholesalers in the channel of distribution?

A. Providing information to retailers

B. Placing radio advertisements for retailers

C. Placing newspaper advertisements for retailers

D. Providing goals for retailers

21) Typically the ______________ and the marketing manager are responsible for building good distribution channels and implementing place policies.

A. public relations manager

B. sales manager

C. advertising manager

D. human resources manager

22) SGCA is having a sales contest to encourage retailers to quickly reduce the inventory of SuperGamer computers. Retailers with the highest sales during the next month win an expense paid trip to a special dealer meeting at a resort in Hawaii. This is

A. probably illegal because it might encourage price competition among retailers

B. an example of cooperative advertising

C. the type of promotion that continues to impact sales even after the promotion is over

D. an example of a manufacturer using trade sales promotion in the channel

23) Advertising allowances

A. are incentive monies given to firms further along in the channel to encourage them to advertise or otherwise promote the firm's products

B. involve intermediaries and producers sharing in the cost of ads

C. allow for coordination and integration of ad messages in the channel

D. set the allowance amount as a percent of the retailer's actual purchases

24) Price reductions given to channel members to encourage them to promote or otherwise promote a firm's products locally are

A. quantity discounts

B. brokerage allowances

C. push money allowances

D. advertising allowances

25) A producer using very aggressive promotion to get final consumers to ask intermediaries for a new product has

A. a pulling policy

B. a target marketing policy

C. a selective distribution policy

D. a pushing policy

26) Nantucket Hammocks, Inc., uses dealer incentives, discounts, and sales contests in order to encourage retailers to give special attention to selling its products. Nantucket Hammocks is using

A. exclusive distribution

B. a corporate channel system

C. dual distribution

D. pushing

27) Quality Ceramic, Inc., (QCI) defined five submarkets within its broad product-market. To obtain some economies of scale, QCI decided NOT to offer each of the submarkets a different marketing mix. Instead, it selected two submarkets whose needs are fairly similar, and is counting on promotion and minor product differences to make its one basic marketing mix appeal to both submarkets. QCI is using the

A. combined target market approach

B. single target market approach

C. multiple target market approach

D. mass marketing approach

28) When segmenting broad product-markets, cost considerations tend

A. to encourage managers to disregard the criterion that a product-market segment should be substantial

B. to lead to more aggregating

C. to be unimportant as long as the segmenting dimensions are operational

D. to lead to a large number of small, but very homogeneous, product-market segments

29) ______________ focuses on introducing new products to existing markets.

A. Market development

B. Product development

C. Diversification

D. Market penetration

30) When a company grows globally by introducing existing product lines to new markets, this is an example of what?

A. Market development

B. Product development

C. Diversification

D. Market penetration

 

QNT 351 Final Exam

Business / Economics

3/10/13

Opening Offer: $27.00
Posted by: rews
Date Posted: 3/10/13 12:18 PM
Due Date: 3/9/13

1) The main purpose of descriptive statistics is to

A. summarize data in a useful and informative manner

B. make inferences about a population

C. determine if the data adequately represents the population

D. gather or collect data

2) The general process of gathering, organizing, summarizing, analyzing, and interpreting data is called

A. statistics

B. descriptive statistics

C. inferential statistics

D. levels of measurement

3) The performance of personal and business investments is measured as a percentage, return on investment. What type of variable is return on investment?

A. Qualitative

B. Continuous

C. Attribute

D. Discrete

4) What type of variable is the number of robberies reported in your city?

A. Attribute

B. Continuous

C. Discrete

D. Qualitative

5) What level of measurement is the number of auto accidents reported in a given month?

A. Nominal

B. Ordinal

C. Interval

D. Ratio

6) The names of the positions in a corporation, such as chief operating officer or controller, are examples of what level of measurement?

A. Nominal

B. Ordinal

C. Interval

D. Ratio

7) Shoe sizes, such as 7B, 10D, and 12EEE, are examples of what level of measurement?

A. Nominal

B. Ordinal

C. Interval

D. Ratio

8) Monthly commissions of first-year insurance brokers are $1,270, $1,310, $1,680, $1,380, $1,410, $1,570, $1,180, and $1,420. These figures are referred to as

A. a histogram

B. raw data

C. frequency distribution

D. frequency polygon

9) A small sample of computer operators shows monthly incomes of $1,950, $1,775, $2,060, $1,840, $1,795, $1,890, $1,925, and $1,810. What are these ungrouped numbers called?

A. Histogram

B. Class limits

C. Class frequencies

D. Raw data

10) The sum of the deviations of each data value from this measure of central location will always be 0

A. Mode

B. Mean

C. Median

D. Standard deviation

11) For any data set, which measures of central location have only one value?

A. Mode and median

B. Mode and mean

C. Mode and standard deviation

D. Mean and median

12) A sample of single persons receiving social security payments revealed these monthly benefits: $826, $699, $1,087, $880, $839, and $965. How many observations are below the median?

A. 0

B. 1

C. 2

D. 3

13) A dot plot shows

A. the general shape of a distribution

B. the mean, median, and mode

C. the relationship between two variables

D. the interquartile range

14) The test scores for a class of 147 students are computed. What is the location of the test score associated with the third quartile?

A. 111

B. 37

C. 74

D. 75%

15) The National Center for Health Statistics reported that of every 883 deaths in recent years, 24 resulted from an automobile accident, 182 from cancer, and 333 from heart disease. Using the relative frequency approach, what is the probability that a particular death is due to an automobile accident?

A. 24/883 or 0.027

B. 539/883 or 0.610

C. 24/333 or 0.072

D. 182/883 or 0.206

16) If two events A and B are mutually exclusive, what does the special rule of addition state?

A. P(A or B) = P(A) + P(B)

B. P(A and B) = P(A) + P(B)

C. P(A and/or B) = P(A) + P(B)

D. P(A or B) = P(A) - P(B)

17) A listing of all possible outcomes of an experiment and their corresponding probability of occurrence is called a

A. random variable

B. probability distribution

C. subjective probability

D. frequency distribution

18) The shape of any uniform probability distribution is

A. negatively skewed

B. positively skewed

C. rectangular

D. bell shaped

19) The mean of any uniform probability distribution is

A. (b - a)/2

B. (a + b)/2

C. Σ x/ η

D. nπ

20) For the normal distribution, the mean plus and minus 1.96 standard deviations will include about what percent of the observations?

A. 50%

B. 99.7%

C. 95%

D. 68%

21) For a standard normal distribution, what is the probability that z is greater than 1.75?

A. 0.0401

B. 0.0459

C. 0.4599

D. 0.9599

22) A null hypothesis makes a claim about a

A. A null hypothesis makes a claim about a

B. sample statistic

C. sample mean

D. Type II error

23) What is the level of significance?

A. Probability of a Type II error

B. Probability of a Type I error

C. z-value of 1.96

D. Beta error

24) Suppose we test the difference between two proportions at the 0.05 level of significance. If the computed z is -1.07, what is our decision?

A. Reject the null hypothesis

B. Do not reject the null hypothesis

C. Take a larger sample

D. Reserve judgment

25) Which of the following conditions must be met to conduct a test for the difference in two sample means?

A. Data must be at least of interval scale

B. Populations must be normal

C. Variances in the two populations must be equal

D. Data must be at least of interval scale and populations must be normal

26) Which of the following statements about the two sample sizes is NOT true? Assume the population standard deviations are equal.

A. Sample A = 11; sample B = 13

B. Sample A = 12; sample B = 14

C. Sample A = 13; sample B = 13

D. Sample A = 10; sample B = 16

27) What is the chart called when the paired data (the dependent and independent variables) are plotted?

A. Scatter diagram

B. Bar chart

C. Pie chart

D. Histogram

28) What is the variable used to predict the value of another called?

A. Independent variable

B. Dependent variable

C. Correlation variable

D. Variable of determination

29) Twenty randomly selected statistics students were given 15 multiple-choice questions and 15 open-ended questions, all on the same material. The professor was interested in determining on which type of questions the students scored higher. This experiment is an example of

A. a one sample test of means

B. a two sample test of means

C. a paired t-test

D. a test of proportions

30) The measurements of weight of 100 units of a product manufactured by two parallel processes have same mean but the standard of process A is 15 while that of B is 7. What can you conclude?

A. The weight of units in process A are grouped closer than in process B

B. The weight of units in process B are grouped closer than in process A

C. Both processes are out of control

D. More data is needed to draw a conclusion

 

Paypal

Business / Economics

3/10/13

Opening Offer: $2.00
Posted by: phd1958
Date Posted: 3/10/13 9:22 AM
Due Date: 3/9/13

I just put money in and am not getting the results I typed in. Need assistance asap.

The ruled surface shown in Figure 2 is..

Calculus

3/5/13

Opening Offer: $8.00
Posted by: dukefabio
Date Posted: 3/5/13 1:07 AM
Due Date: 3/4/13

The ruled surface shown in Figure 2 is generated by lin- early blending two parametric curves, a Hermite cubic spline segment G(u) and a line segment Q(u). G(u) is defined by the end-points P0 = [0;0;0]T and P1 = [5;0;0]T and the tangent vectors at these end points P0 0 = [2;2;0]T and P0 1 = [2; 2;0]T . Q(u) is de fined by the start point P2 = [0;0;5]T (u = 0) and the end point P3 = [5;0;5]T (u = 1). De- termine the x, y and z-components of the parametric equation S(u; v) = Sx(u; v); Sy(u; v); Sz(u; v)]T for this surface. Expand the component equa- tions so they are in standard form (ie. a0u 2 v 2 + a1u 2 v + a2u 2 + a3uv2 + a4v 2 + a5uv + a6u + a7v + a8).

MGT 330 Final Exam

Business / Economics

2/27/13

Opening Offer: $25.00
Posted by: prusigor23
Date Posted: 2/27/13 10:03 AM
Due Date: 2/26/13

1) Which of the following functions of management is focused on delivering strategic value?

 

A. Planning

 

B. Organizing

 

C. Leading

 

D. Controlling

 

2) Which of the following best characterizes the controlling function of management?

 

A. Motivating people to be high performers

 

B. Assigning job responsibilities and allocating resources

 

C. Monitoring performance and implementing changes as necessary

 

D. Analyzing current situations and formulating business strategies

 

3) __________ involves analyzing a situation, determining goals to be pursued, and deciding upon the actions that will be taken to achieve these goals.

 

A. Staffing

 

B. Leading

 

C. Organizing

 

D. Planning

 

4) Robert was recently hired as the workplace safety compliance officer at ABC Power Company. Robert will have the responsibility to monitor regulations from which of these government agencies?

 

A. Federal Communications Commission

 

B. Environmental Protection Agency

 

C. National Labor Relations Board

 

D. Occupational Safety and Health Administration

 

5) Which of the following is the first step in effective delegation?

 

A. Give the person the authority needed.

 

B. Define the goal succinctly.

 

C. Select the person to do the task.

 

D. Solicit ideas from subordinates.

 

6) The assignment of different tasks to different people or groups is the

 

A. strategic plan

 

B. organization structure

 

C. division of labor

 

D. value chain

 

7) Plans are

 

A. actions taken to achieve goals

 

B. targets a manager wants to reach

 

C. specific to differing industries

 

D. inappropriate when resources are scarce

 

8) The outcome of situational analysis is

 

A. the identification of alternative plans of action

 

B. the identification of contingency plans to be followed under various scenarios

 

C. the identification of planning assumptions, issues, and problems

 

D. the identification of the consequences of alternatives under consideration

 

9) What is management's function in strategic planning?

 

A. To outline the goals and objectives of the organization

 

B. To give specific directions as to how each department is operated

 

C. To begin the selection and hiring process for the organization

 

D. To set-up tight controls on how each function in the organization is to be structured

 

10) Which of the following would provide the best information for the manager on factors that influence the company's strategic, tactical, operational, and contingency plans?

 

A. Recently released government regulations

 

B. Statistical data regarding market share

 

C. SWOT analysis

 

D. Prior year's financial performance of the company

 

11) __________ plans might be referred to as "what-if" plans.

 

A. Single-use

 

B. Strategic

 

C. Contingency

 

D. Standing

 

12) A plan that focuses on ongoing activities and may become a more permanent policy or rule is a

 

A. standing plan

 

B. single-use plan

 

C. strategy

 

D. mission statement

 

13) Which type of program should management implement to have a culture of ethics that prevent, detect, and punish legal violations?

 

A. Sarbanes-Oxley Act Training

 

B. Ethics program

 

C. Compliance-based ethics program

 

D. Integrity-based ethics program

 

14) Honesty, caring, loyalty, fairness, and integrity are all examples of

 

A. citizenship

 

B. values

 

C. self-focus

 

D. ethics

 

15) As a manager, you want to create a project team to plan and implement a project designed to meet the demands of globalization. Which of the following types of organizational structure would you use to achieve higher degree of flexibility and adaptability of the team members?

 

A. Functional

 

B. Divisional

 

C. Matrix

 

D. Network

 

16) The planning process of human resources management begins with

 

A. determining the number and types of people needed to realize the organization's business plans

 

B. recruiting individuals who will assist the organization to realize its business plans

 

C. training people who will assist the organization to realize its business plans

 

D. evaluating an organization's present employees and their capabilities to fulfill the organization's business plans

 

17) Which type of organizational structure optimizes employee empowerment?

 

A. Centralized

 

B. Decentralized

 

C. Functional

 

D. Divisional

 

18) The assignment of different tasks to different people or groups is the

 

A. strategic plan

 

B. organization structure

 

C. division of labor

 

D. value chain

 

19) Which of the following is an advantage of product departmentalization?

 

A. Information needs managed more easily

 

B. Suitable for stable environments

 

C. Efficient resource utilization

 

D. Decision making and lines of communication are simple

 

20) Ruby recently accepted a job with a large insurance firm as an internal auditor. Ruby has found that her job is different than the internship she had at an accounting consulting firm. The insurance firm has strictly defined job responsibilities and lines of communication. For every decision Ruby needs to make, approval must be obtained from upper management. Overall, she has found the atmosphere to be quite formal as compared to the internship. Ruby has concluded that the insurance firm has

 

A. a high degree of centralization

 

B. decentralized authority

 

C. a matrix design

 

D. an ineffective structure

 

21) A mental image of a possible and desirable future state of the organization is a(n)

 

A. strategic plan

 

B. operational plan

 

C. goal

 

D. vision

 

22) A leader is

 

A. someone with authority over others

 

B. the top-level manager in a firm or business

 

C. a strategic-level manager

 

D. someone who influences others to attain goals

 

23) Legitimate power is described as power that exists through

 

A. control over punishments

 

B. control over rewards

 

C. the authority to tell others what to do

 

D. having expertise

 

24) Behavior that gives purpose and meaning to organizations, while envisioning and creating a positive future, is

 

A. supervisory leadership

 

B. strategic leadership

 

C. charismatic leadership

 

D. task-motivated leadership

 

25) NAFTA combined the economies of

 

A. the U.S., Canada, and Mexico

 

B. Canada, Mexico, and South America

 

C. South America, the U.S., and Latin America

 

D. Latin America, Pacific Rim, and the European Union

 

26) A pharmaceutical manufacturer actively monitors all products produced to verify their ingredients fall within rigid control ranges that ensure product effectiveness. This monitoring allows them to make adjustments should they see negative trends occurring. The manufacturer is engaging in the management function of

 

A. planning

 

B. controlling

 

C. quality assurance

 

D. regulatory compliance

 

27) Which type of control works best when there is "no one best way" to do a job and employees are empowered to make decisions?

 

A. Bureaucratic control

 

B. Market control

 

C. Clan control

 

D. Performance control

 

28) This type of control takes place while plans are carried out, and is the heart of any control system.

 

A. Feedback control.

 

B. Concurrent control

 

C. Feed forward control

 

D. Market control

 

29) Where are performance data commonly obtained?

 

A. Oral and written reports and personal observation

 

B. Supervisors, line managers, and coworkers

 

C. Top, middle, and lower management

 

D. Competitors

 

30) The last step in the control process is

 

A. taking corrective action

 

B. setting performance standards

 

C. measuring performance

 

D. comparing performance

 

MGT 230 Final Exam

Business / Economics

2/27/13

Opening Offer: $25.00
Posted by: prusigor23
Date Posted: 2/27/13 9:58 AM
Due Date: 2/26/13

1) Planning involves which of the following?

A. Analyzing current situations

B. Determining rewards for goals achievement

C. Motivating employees

D. Implementing necessary changes

 

2) _______ is specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals.

A. Staffing

B. Leading

C. Organizing

D. Planning

 

3) Advances in genetic engineering and biotechnology are expected to produce some food products that will become available year-round even in northern climates. These changes will provide grocers with an opportunity to reduce their shipping costs while at the same time, offering fresher produce to their customers. These advances are an example of changes in the

A. technological environment

B. economic environment

C. political environment

D. ecological environment

 

4) _________ trends regarding how people think and behave have major implications for management of the labor force, corporate social actions, and strategic decisions about products and markets.

A. Psychological

B. Economic

C. Technological

D. Societal

 

5) Which of the following is a step in the decision-making process?

A. Generating an idea

B. Good business planning

C. Evaluating the decision

D. Delegating a task

 

6) Which is a step in the decision-making process?

A. Resolving and reducing conflict

B. Making the choice

C. Using the lack of structure

D. Delegating a task

 

7) The targets or ends the manager wants to reach are called

A. goals

B. missions

C. visions

D. strategies

 

8) In the _______________ stage of the planning process, managers should weigh the advantages, disadvantages, and potential effects of each alternative goal and plan.

A. goal and plan evaluation

B. goal and plan selection

C. implementation

D. alternate goals and plans

 

9) Tactical planning would include which of the following?

A. Profit goals

B. Design, test, and install the equipment needed to produce a new product line

C. Human resources requirements

D. Return on investment

 

10) The internal analysis component of the strategic management process assesses the organization's

A. performance levels

B. competitors

C. industry growth rate

D. product substitutions in the market

 

11) Eagle Manufacturing, Inc., is in the middle of its first day of the senior management retreat. The topic on the agenda is corporate social responsibility (CSR). Most of the group has seen this brought up before and then shot down because it generally costs Eagle's shareholders in the form of a lower stock price. But the new VP of Ethics, Gloria Wright, is about to explain why she believes CSR will actually benefit the shareholders and Eagle management alike. Her team begins the presentation with a discussion of CSR—its current definition and reconciliation of past views. Jeremiah then discusses the importance of being a good global corporate citizen by supporting the local school system. Ellen takes the floor to make the case for doing what is expected by global stakeholders even though there are no

laws requiring those actions. Finally Gloria wraps the discussion up with why Eagle should take legal and economic responsibility for the firm's performance. To Gloria's team's credit, senior management does appear to buy into the pyramid of global corporate social responsibility and performance that her team just presented.

Ellen's presentation most likely focused on the __________ responsibility of the firm.

A. economic

B. legal

C. ethical

D. social

 

12) Eagle Manufacturing, Inc., is in the middle of its first day of the senior management retreat. The topic on the agenda is corporate social responsibility (CSR). Most of the group has seen this brought up before and then shot down because it generally costs Eagle's shareholders in the form of a lower stock price. But the new VP of Ethics, Gloria Wright, is about to explain why she believes CSR will actually benefit the shareholders and Eagle management alike. Her team begins the presentation with a discussion of CSR—its current definition and reconciliation of past views. Jeremiah then discusses the importance of being a good global corporate citizen by supporting the local school system. Ellen takes the floor to make the case for doing what is expected by global stakeholders even though there are no

laws requiring those actions. Finally Gloria wraps the discussion up with why Eagle should take legal and economic responsibility for the firm's performance. To Gloria's team's credit, senior management does appear to buy into the pyramid of global corporate social responsibility and performance that her team just presented.

Gloria's team's presentation focused on the pyramid of global corporate social responsibility. To do what is desired by global stakeholders correlates with the _______ component of the pyramid.

A. philanthropic

B. ethical

C. legal

D. economic

 

13) In the study by Lawrence and Lorsch, companies in complex, dynamic environments developed _____ levels of differentiation; and

_____ levels of integration.

A. low; low

B. high; high

C. low; high

D. high; low

 

14) An aspect of the organization's internal environment created by job specialization and the division of labor is called

A. differentiation

B. integration

C. division of labor

D. specialization

 

15) An organization with departmentalization that groups units around products, customers, or geographic regions is called a

A. divisional organization

B. centralized organization

C. matrix organization

D. functional organization

 

16) Which of the following statements about matrix organizations is true?

A. A matrix organization is the same as a functional organization.

B. A matrix organization is the same as a product organization.

C. A matrix organization is a hybrid of the functional and divisional organizational forms.

D. A matrix organization is considered out-of-date compared to the organic organization.

 

17) An organization with departmentalization that groups units around products, customers, or geographic regions is called a

A. centralized organization

B. matrix organization

C. virtual organization

D. divisional organization

 

18) Sports International (SI) began business by making shoes for athletes. They soon expanded into making shoes for non-athletic purposes. They now manufacture and distribute clothing, sporting equipment, and protective sports gear worldwide. They are departmentalized by products sold to serious athletes, products sold to "weekend" athletes and products sold to sports teams. SI has

utilized which form of departmentalization?

A. Geographic

B. Customer

C. Functional

D. Matrix

 

19) The trait known as leadership motivation suggests that great leaders

A. can motivate others to work hard

B. can motivate others to become leaders

C. can motivate others to join

D. want to lead

 

20) A leadership perspective that attempts to identify what effective leaders do and the behaviors they exhibit is referred to as the

A. behavioral approach

B. trait approach

C. transformational leadership

D. strategic approach

 

21) __________ leadership invites colleagues at the same level to solve problems together.

A. Horizontal

B. Collegial

C. Lateral

D. Linear

22) Leaders who relate to others to serve their needs and enhance their personal growth while strengthening the organization are known as

A. lateral leaders

B. shared leaders

C. bridge leaders

D. servant-leaders

 

23) A shift in worker values toward personal time, quality of life, self-fulfillment, and family is occurring among

A. men

B. women

C. women and men

D. minorities

 

24) Future trends in the labor force include a

A. smaller labor force

B. more experienced labor force

C. more homogenous labor force

D. younger labor force

 

25) Behavior that gives purpose and meaning to organizations, while envisioning and creating a positive future, is known as

A. strategic leadership

B. supervisory leadership

C. organizational leadership

D. task leadership

 

26) The correspondence between actions and words that include characteristics such as honesty and credibility is known as

A. drive

B. self-confidence

C. knowledge of the business

D. integrity

 

27) Owners from two businesses have asked you which type of control system they should utilize. To help you make your decision, they have each provided a brief description of their organization. Alpha Omega, Inc., is a large corporation built in the 1950s. They produce chemical concentrates for industrial cleaning. Their organization uses a strict set of rules and regulations with their workforce. They have

the ability to track a large amount of data using statistical techniques. Mid-Atlantic Health is a regional medical center. They want to use a control system that will allow them to tie pricing of services and profits to specific services in the medical center. The control systems that should be used in the scenarios above were developed by

A. William Ouchi

B. Xerox

C. Frederick Taylor

D. Motorola

 

28) Your manager is speaking to a group of employees about a problem in your department. Employees are not complying with the rules regarding clocking in and clocking out each day. The rules in this situation are very important as employees will not receive their correct pay if the clocking procedures are not followed. There are three suggestions being considered to address this problem.

Employees will be monitored at the entrance during shift changes to make sure that each complies with the procedure.

Reports will be reviewed at the end of each pay period. The reports will contain data tracking the number of employees not complying with the procedures each shift. Employees violating the procedure will be counseled to correct the problem.

A new procedure will be developed describing an easier procedure for employees to follow. Training will be conducted so that each employee knows the policy and the procedure before it is enacted.

Option 1 describes which approach to bureaucratic control?

A. Feedback

B. Concurrent

C. Feedforward

D. Market

 

29) Suppose you are interviewing the CEO of a large company. The CEO is telling you about his or her job as a manager and how he or she spends time. Using the description below, which function of management is the CEO most likely describing in this example?

"My job, for some part of each day, is to empower our employees to think of things in new and different ways, not just to come to work and complete the tasks on a list."

A. Organizing

B. Leading

C. Controlling

D. Decision making

 

30) Suppose you are interviewing the CEO of a large company. The CEO is telling you about his or her job as a manager and how he or she spends time. Using the description below, which function of management is the CEO most likely describing in this example?

"Every six months or so, my senior management team and I meet to discuss the goals that will be achieved over the next year, three years, and beyond. We then make sure we are clear on who will take responsibility to see that the appropriate actions are undertaken to achieve our goals within the time frame we set."

A. Planning

B. Organizing

C. Leading

D. Decision making

 

ACC 561 Final Exam

Business / Economics

2/27/13

Opening Offer: $20.00
Posted by: prusigor23
Date Posted: 2/27/13 9:52 AM
Due Date: 2/26/13

1The statement of cash flows is used for all of the following except_____.

A. evaluating the creditworthiness of the organization 

B. determining a company's ability to pay its debts when they are due

C. showing the relationship of net income to changes in cash

D. revealing commitments that may restrict future courses of action


2) Nonoperating items on the income statement _____.

A. are revenues and expenses arising from adjusting entries
B. include interest income and expense
C. appear only on corporate income statements
D. appear on the income statement immediately after gross profit 

3) The difference between a single-step and multiple-step income statement is that a single-step income statement _____.

A. groups all revenues together and all expenses together, whereas a multiple-step income statement separates certain revenues and expenses from each other and presents subtotals
B. calculates net income using one method, whereas a multiple-step income statement calculates net income using two or more methods
C. calculates gross profit and operating income, whereas a multiple-step income statement does not
D. shows only 1 year's net income, whereas a multiple-step income statement shows multiple years' net income 

4) Which one of the following statements is true?

A. The statement of cash flows reports the cash receipts but not cash payments of an entity over a period of time.
B. Both the statement of cash flows and the income statement determine the net income for a company.
C. Transactions affecting the sale and the purchase or production of goods and services are reported in the financing activities section of the statement of cash flows.
D. Investing activities in the statement of cash flows include acquiring and selling long-term assets. 

5) The _____ accounting convention uses the acquisition cost minus depreciation in valuing an asset on the balance sheet.

A. continuity
B. conservatism
C. cost-benefit
D. materiality 

6) A new corporation issuing a common, no-par value stock for cash would include a journal entry a debit to _____.

A. paid-in capital and a credit to retained earnings.
B. cash and a credit to common stock.
C. retained earnings and a credit to cash.
D. cash and a credit to retained income. 

7) Which type of organization would most likely have work-in-process inventory?

A. A retail store
B. A manufacturing company
C. A service organization
D. A real-estate investment trust 

8) _____ is a measure of income or profit divided by the investment required to obtain that income or profit.

AA. Return on sales
B. Capital turnover
C. Return on investment
D. Residual income

9) The following information is available for the Peter Company:

Sales: $150,000

Invested capital: $156,250

ROI: 10%

The return on sales is _____.

A. 10.00%
B. 10.42%   (156250*10%=15625) 15625/150000*100=10.42%
C. 62.50%
D. 9.60% 

10) The following information is available for the Peter Company:

Sales: $500,000

Invested capital: $312,500

ROI: 10%

The return on sales is _____.

A. 10.00%
B. 6.250%
C. 1.000%
D. 62.50% 

11) Company A's revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, return on investment will be _____.

A. 75% B. 93.75% C. 18.75% D. 46.88%

12) When the variable costing method is used, fixed factory overhead appears on the income statement as a _____.

A. component of cost of goods sold

B. fixed expense C. production-volume variance D. component of gross profit

13) In absorption costing, costs are separated into the major categories of _____.

A. manufacturing and nonmanufacturing B. manufacturing and fixed C. fixed and variable D. variable and nonmanufacturing

14) _____ is another term for variable costing.

A. Full costing B. Direct costing C. Traditional costing D. Absorption costing

15) Budgeted service department cost rates protects the user departments from _____.

A. service department efficiencies 

B. price fluctuations C. service outages D. employee control

16) _____ is an example of the external financial-reporting purpose of the cost management systems.

A. The cost of a manufacturing process B. The product mix to optimize profitability C. The amount of inventory that should appear on the balance sheet

D. Budget reporting

17) The level of sales at which revenues equal expenses and net income is zero is called the _____.

A. margin of safety B. contribution margin C. break-even point D. marginal income point

18) Output measures of both resources and activities are _____.

A. cost drivers B. stages of production

C. fixed activities D. variable activities

19) The break-even point is where _____.

A. total sales revenue equals total cost plus desired profit. B. the contribution margin equals net income plus fixed costs.

C. total sales revenue equals total cost. D. the variable cost equals total cost.

20) _____ budgeting is when budgets are formulated with the active participation of all affected employees.

A. Financial B. Team C. Participative

D. Shared

21) _____ is the logical integration of management accounting tools to gather and report data and to evaluate performance.

A. An internal control system B. A quality control system

C. A financial-reporting system D. A management control system

22) _____ are components of a master budget.

A. A strategic plan and an operating budget B. An operating budget and a capital budget

C. A continuous budget and a static budget D. A cash budget and an activity budget

23) An important factor considered by sales forecasters is _____.

A. production employee requirements. B. expectations of the board of directors.

C. competitors' activities. D. the desired level of sales.

24) _____ models are mathematical models of the master budget that can react to any set of assumptions about sales, costs, and product mix.

A. Variance analysis B. Financial planning C. Accounting D. Futuring

25) Which of the following is an objective of budgeting?

A. Budgeting provides benchmarks against which performance can be measured. B. Budgeting provides a fixed fiscal plan that should not be changed during the year. C. Budgeting helps managers build favorable variances into the performance-evaluation process.

D. Budgeting is done exclusively by the chief fiscal officer for control purposes.

26) An organization's budget program should be used

A. to have power over employees. B. to assign blame to managers that do not meet budgetary goals. C. to help managers plan and control the organization's performance. D. to help the chief fiscal officer to allocate resources to the favored projects of the executives.

27) The activity-based costing may reveal _________, whereas traditional costing cannot.

A. high-volume products are overcosted B. low-volume products are overcosted C. both high- and low-volume products are overcosted D. both high- and low-volume products are undercosted

28) _____ is a method of approximating cost functions.

A. Cost-driver analysis B. Transaction analysis C. Product analysis D. Account analysis

29) In relation to a cost function, the term reliability refers to _____.

A. whether the costs and activities can be easily observed B. whether the cost function conforms to a given mathematical model

C. how well the cost function predicts future costs

D. how well the cost function explains past cost behavior

30) One of the simplest methods to measure a linear cost function from past data is the _____.

A. regression analysis method B. high–low method C. least squares regression method

D. visual-fit method

 

ACC 561 Final Exam 54questions A+

Business / Economics

2/27/13

Opening Offer: $25.00
Posted by: prusigor23
Date Posted: 2/27/13 9:47 AM
Due Date: 2/26/13

1) Department performance reports can be used to help department heads determine _____. A. who is primarily responsible for any deviations from plans B. how effectively and efficiently the department is operating C. how effectively the department is operating D. how efficiently the department is operating

2) Budgets _____. A. ignore areas that are presumed to be running smoothly B. are deviations from a plan C. are quantitative expressions of action plans D. provide feedback by comparing results with plans and by highlighting deviations from plans

3) Performance reports _____. A. ignore areas that are presumed to be running smoothly B. are deviations from a plan C. are quantitative expressions of action plans D. provide feedback by comparing results with plans and by highlighting deviations from plans

4) According to the Institute of Management Accountants' Statement of Ethical Professional Practice, the standard of competence includes: A. the ongoing development of the accountant's knowledge and skills B. All of these answers are correct C. disclosing all relevant information D. avoiding actual or apparent conflicts of interest

5) Which of the following is not a major factor causing changes in management accounting today? A. Declining work ethic is not a major factor. B. Increasing importance of the service sector of the economy is not a major factor. C. E-commerce is not a major factor. D. Increased global competition is not a major factor.

6) Ethical accountants are important to society because _____. A. they pay their taxes B. none of these answers is correct C. they will not go to prison and waste taxpayers' money D. the information produced is reliable

7) The primary users of management accounting information are _____. A. bankers B. suppliers C. internal decision makers D. governmental regulatory authorities

8) _____ is (are) the accounting system's effect on the decision of managers. A. Simplicity B. Computerization C. The cost-benefit balance D. Behavioral implications

9) _____ is the field of accounting that develops information for external decision makers such as stockholders, suppliers, banks, and government regulatory agencies. A. Auditing B. Financial accounting C. Management accounting D. Tax accounting

10) The _____ is also called the statement of financial position. A. income statement B. statement of cash flows C. statement of retained earnings D. balance sheet

11) _____ would not appear on the financial statements for a sole proprietorship. A. Paid-in Capital B. Unearned Sales Revenues C. Accumulated Depreciation D. Cost of Goods Sold

12) Etiwanda Company's accountant recorded a debit to Accounts Payable and a credit to Cash. This transaction will_____. A. increase Cash and decrease Accounts Payable B. decrease Cash and decrease Accounts Payable C. increase Cash and increase Accounts Payable D. decrease Cash and increase Accounts Payable

13) The use of acquisition cost less depreciation in valuing an asset on the balance sheet is the logical result of the _____ accounting convention. A. continuity B. materiality C. cost-benefit D. conservatism

14) The accounting convention of _____ permits a company to immediately expense assets (such as a garbage can) with small values and long useful lives. A. objectivity B. conservatism C. materiality D. continuity

15) The accounting convention of _____ guides the relative sophistication of the accounting system. A. conservatism B. materiality C. objectivity D. cost benefit

16) Limited liability means that_____. A. the company is required to pay only current liabilities in the current year and has no obligation to pay long term liabilities in the current year B. corporations can have liabilities up to only a certain amount due to limits on the company's borrowing capability C. the creditors of the corporation have claims on only the assets of the corporation and not the assets of the owners of the corporation D. the creditors of a corporation can receive only up to, and no more than, the amount due to them

17) The Rebecca Company acquired merchandise inventory costing $10,000 on September 1. The company will not pay for the inventory until October 1. This transaction will affect the Rebecca Company by increasing the Merchandise Inventory account by $10,000 and _____. A. increasing the Capital account by $10,000 B. decreasing the Capital account by $10,000 C. increasing the Accounts Payable account by $10,000 D. decreasing the Accounts Payable account by $10,000

18) Nonoperating items on the income statement_____. A. appear only on corporate income statements B. appear on the income statement immediately after gross profit C. are revenues and expenses arising from adjusting entries D. reflect the effects of financial management decisions

19) Which value chain function would include the cost of computer-aided design equipment and cost to develop the prototype of a product? A. The production function would include these costs. B. The marketing function would include these costs C. The distribution function would include these costs. D. The design of product, services, and processes function would include these costs.

20) Which of the following is not a cost driver of customer services costs? A. Number of service calls is not a cost driver of customer services costs. B. All of these answers are correct C. Hours spent servicing products are not a cost driver of customer services costs. D. Travel costs are not a cost driver of customer services costs.

21) Which value chain function would include advertising costs? A. The production function would include advertising costs. B. The marketing function would include advertising costs. C. The distribution function would include advertising costs. D. The customer service function would include advertising costs.

22) Hug Me Company produces dolls. Each doll sells for $20.00. Variable costs per unit total $14.00, of which $6.25 is for direct materials and $5.25 is for direct labor. If total fixed costs are $435,000, then the break even volume in dollars is _____. A. $621,429 B. $435,000 C. $1,450,000 D. $1,023,529

23) Walnut Corporation sells desks at $480 per desk. The costs associated with each desk are as follows: Direct materials $195 Direct labor 126 Variable factory overhead 51 Total fixed costs for the period are $456,840. The contribution margin per desk is _____. A. $51 B. $126 C. $195 D. $108

24) Knothole Company sells desks at $480 per desk. The costs associated with each desk are as follows: Direct materials $195 Direct labor 126 Variable factory overhead 51 Total fixed costs for the period are $456,840. The break-even volume in dollars is _____. A. $2,030,400 B. none of these answers is correct C. $456,840 D. $1,573,560

25) Managers should apply two principles to obtain accurate and useful cost functions. These principles are ____. A. reliability and validity B. believability and validity C. plausibility and believability D. plausibility and reliability

26) The _____ method of measuring cost functions is the least reliable. A. high low B. simple least squares regression C. multiple least squares regression D. visual fit

27) In relation to a cost function, the term reliability means_____. A. whether the costs and activities can be easily observed B. how well the cost function predicts future costs C. how well the cost function explains past cost behavior D. whether the cost function conforms to a given mathematical model

28) The change from traditional costing to activity-based costing may reveal that _____. A. high volume products are overcosted B. both high and low volume products are overcosted C. both high and low volume products are undercosted D. low volume products are overcosted

29) _____ is a name for a system that first accumulates overhead costs for each of the activities of an organization, and then assigns the costs of activities to the products, services, or other cost objects that caused that activity. A. Activity based costing B. Transaction based accounting C. Transaction costing D. Cost driver accounting

30) _____ need cost accounting systems. A. Manufacturing firms and service organizations B. Manufacturing firms and nonprofit organizations C. Manufacturing firms, service organizations, and nonprofit organizations D. Service organizations and nonprofit organizations

31) _____ models are mathematical models of the master budget that can react to any set of assumption about sales, costs, and product mix. A. Budgeting analysis B. Accounting C. Futuring D. Financial planning

32) A sales forecast is _____. A. a prediction of sales under a given set of conditions B. the same as a sales budget that will generate a desired level of sales C. all of these answers are correct D. the result of decisions to create conditions 33) A _____ gives the expected sales under a given set of conditions. A. sales prediction B. budget forecast C. sales forecast D. sales budget

34) Important factors considered by sales forecasters include all of the following except _____. A. past patterns of sales B. competitors' activities C. the desired level of sales D. marketing research studies

35) A _____ gives the expected sales under a given set of conditions. A. sales prediction B. budget forecast C. sales forecast D. sales budget

36) A sales forecast is _____. A. a prediction of sales under a given set of conditions B. the same as a sales budget that will generate a desired level of sales C. all of these answers are correct D. the result of decisions to create conditions

37) _____ probably would not be used as a measure of activity in a flexible budget. A. Sales volume B. Number of machine hours used C. Number of hours worked by salespeople D. Number of direct labor hours worked

38) _____ are components of a master budget. A. A continuous budget and a static budget B. An operating budget and a financial budget C. A strategic plan and an operating budget D. A cash budget and an activity budget

39) The master budget quantifies targets for all of the following except _____. A. markets B. production C. sales D. cost driver activity

40) Costs are allocated for all the following purposes except to _____. A. determine inventory levels B. obtain reimbursement C. predict the economic effects of planning and control decisions D. compute income and asset valuation

41) _____ is not a type of cost allocation. A. Allocation of costs of a particular organizational unit to products or services B. Reallocation of costs from service departments to production departments C. Allocation of costs to the appropriate organizational unit D. Reallocation of costs from production departments to service departments

42) The preferred guidelines for allocating service department costs include _____. A. establishing part or all of the details regarding cost allocation in advance of rendering the service B. evaluating performance using allocated costs for each service department C. identifying the direct and indirect costs D. allocating variable- and fixed-cost pools simultaneously

43) Gomez Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year _____. Maintenance Personnel Mixing Finishing Direct dept. costs $126,000 $84,000 $105,000 $175,000 Square footage 800 400 1,600 1,200 Number of employees 8 12 24 32 If the step-down method is used to allocate costs and the Maintenance Department is allocated first, the amount of overhead that would be allocated from Maintenance to Mixing is: A. $36,000 B. $42,750 C. $42,000 D. $63,000

44) Serena Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year: Maintenance Personnel Mixing Finishing Direct dept. costs $126,000 $84,000 $105,000 $175,000 Square footage 800 400 1,600 1,200 Number of employees 8 12 24 32 If the step-down method is used to allocate costs and the Maintenance Department is allocated first, then the amount of overhead that would be allocated from Maintenance to Finishing is _____. A. $57,000 B. $31,500 C. $42,750 D. $47,250

45) Martinez Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year: Maintenance Personnel Mixing Finishing Direct dept. costs $50,400 $33,600 $42,000 $5,600 Square footage 1,600 800 3,200 2,400 Number of employees 16 24 48 64 If the step down method is used to allocate costs and the Maintenance Department is allocated first, then the amount of overhead that would be allocated from Personnel to Maintenance is _____. A. $3,539 B. $4,200 C. $4,998 D. $0

46) factory overhead appears on the absorption-costing income statement as_____. A. a production volume variance B. part of cost of goods sold C. a fixed expense D. part of cost of goods sold and as a production volume variance

47) In absorption costing, costs are separated into the major categories of_____. A. fixed and variable B. manufacturing and fixed C. manufacturing and nonmanufacturing D. variable and nonmanufacturing

48) Absorption costing assigns _____ to the product. A. variable and fixed manufacturing costs B. all variable costs C. variable manufacturing costs D. all fixed and variable costs

49) Identify which of the following is not a characteristic of a management control system. A. A management control system aids and coordinates the process of making decisions. B. A management control system motivates individuals throughout the organization to act in concert. C. A management control system encourages short term profitability. D. A management control system coordinates forecasting sales and cost driver activities, budgeting, and measuring and evaluating performance.

50) _____ is (are) the most basic component of a management control system. A. The organization's long-range budget B. The stockholder's preferences C. The organization's goals D. Top management's preferences

51) _____ is the first step in designing a management control system. A. Evaluating management's performance B. Preparing financial statements C. Establishing organizational goals D. Distinguishing between profit centers and cost centers

52) Speedo Company's revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its invested capital by 20%, return on investment will be _____. A. 75% B. 18.75% C. 93.75% D. 46.88%

53) Jewel Company's revenues are $300 and invested capital is $240. Expenses are currently 60% of sales. Jewel Company's current return on investment is _____. A. 50% B. 80% C. 100% D. none of these answers are correct

54) The following information is available for the Peter Company: Sales $150,000 Invested Capital 156,250 ROI 10% The return on sales is _____. A. 10.00% B. 62.50% C. 10.42% D. none of these answers is correct

 

FIN 534 quiz 8 week 9

Business / Economics

2/26/13

Opening Offer: $22.99
Posted by: orchid
Date Posted: 2/26/13 9:44 AM
Due Date: 2/25/13

.Question 1

Which of the following statements is correct?

Answer

One advantage of dividend reinvestment plans is that they enable investors to avoid paying taxes on the dividends they receive.

If a company has an established clientele of investors who prefer a high dividend payout, and if management wants to keep stockholders happy, it should not

follow the strict residual dividend policy.

If a firm follows a strict residual dividend policy, then, holding all else constant, its dividend payout ratio will tend to rise whenever the firm's investment opportunities improve.

If Congress eliminates taxes on capital gains but leaves the personal tax rate on dividends unchanged, this would motivate companies to increase their dividend payout ratios.

Despite its drawbacks, following the residual dividend policy will tend to stabilize actual cash dividends, and this will make it easier for firms to attract a clientele that prefers high dividends, such as retirees.

2 points

Question 2

In the real world, dividends

Answer

are usually more stable than earnings.

fluctuate more widely than earnings.

tend to be a lower percentage of earnings for mature firms.

are usually changed every year to reflect earnings changes, and these changes are randomly higher or lower, depending on whether earnings increased or decreased.

are usually set as a fixed percentage of earnings, e.g., at 40% of earnings, so if EPS = $2.00, then DPS will equal $0.80. Once the percentage is set, then dividend policy is on "automatic pilot" and the actual dividend depends strictly on earnings.

2 points

Question 3

Which of the following statements is correct?

Answer

Firms with a lot of good investment opportunities and a relatively small amount of cash tend to have above average payout ratios.

One advantage of the residual dividend policy is that it leads to a stable dividend payout, which investors like.

An increase in the stock price when a company decreases its dividend is consistent with signaling theory as postulated by MM.

If the "clientele effect" is correct, then for a company whose earnings fluctuate, a policy of paying a constant percentage of net income will probably maximize the stock price.

Stock repurchases make the most sense at times when a company believes its stock is undervalued.

2 points

Question 4

If a firm adheres strictly to the residual dividend policy, the issuance of new common stock would suggest that

Answer

the dividend payout ratio has remained constant.

the dividend payout ratio is increasing.

no dividends were paid during the year.

the dividend payout ratio is decreasing.

the dollar amount of investments has decreased.

2 points

Question 5

You own 100 shares of Troll Brothers' stock, which currently sells for $120 a share. The company is contemplating a 2-for-1 stock split. Which of the following best describes what your position will be after such a split takes place?

Answer

You will have 200 shares of stock, and the stock will trade at or near $120 a share.

You will have 200 shares of stock, and the stock will trade at or near $60 a share.

You will have 100 shares of stock, and the stock will trade at or near $60 a share.

You will have 50 shares of stock, and the stock will trade at or near $120 a share.

You will have 50 shares of stock, and the stock will trade at or near $60 a share.

2 points

Question 6

If a firm adheres strictly to the residual dividend policy, then if its optimal capital budget requires the use of all earnings for a given year (along with new debt according to the optimal debt/total assets ratio), then the firm should pay

Answer

no dividends except out of past retained earnings.

no dividends to common stockholders.

dividends only out of funds raised by the sale of new common stock.

dividends only out of funds raised by borrowing money (i.e., issue debt).

dividends only out of funds raised by selling off fixed assets.

2 points

Question 7

Which of the following statements is correct?

Answer

Under the tax laws as they existed in 2008, a dollar received for repurchased stock must be taxed at the same rate as a dollar received as dividends.

One nice feature of dividend reinvestment plans (DRIPs) is that they reduce the taxes investors would have to pay if they received cash dividends.

Empirical research indicates that, in general, companies send a negative signal to the marketplace when they announce an increase in the dividend, and as a result share prices fall when dividend increases are announced. The reason is that investors interpret the increase as a signal that the firm has relatively few good investment opportunities.

If a company wants to raise new equity capital rather steadily over time, a new stock dividend reinvestment plan would make sense. However, if the firm does not want or need new equity, then an open market purchase dividend reinvestment plan would probably make more sense.

Dividend reinvestment plans have not caught on in most industries, and today about 99% of all companies with DRIPs are utilities.

2 points

Question 8

Which of the following would be most likely to lead to a decrease in a firm's dividend payout ratio?

Answer

Its earnings become more stable.

Its access to the capital markets increases.

Its R&D efforts pay off, and it now has more high-return investment opportunities.

Its accounts receivable decrease due to a change in its credit policy.

Its stock price has increased over the last year by a greater percentage than the increase in the broad stock market averages.

2 points

Question 9

Firm M is a mature firm in a mature industry. Its annual net income and net cash flows are both consistently high and stable. However, M's growth prospects are quite limited, so its capital budget is small relative to its net income. Firm N is a relatively new firm in a new and growing industry. Its markets and products have not stabilized, so its annual operating income fluctuates considerably. However, N has substantial growth opportunities, and its capital budget is expected to be large relative to its net income for the foreseeable future. Which of the following statements is correct?

Answer

Firm M probably has a lower debt ratio than Firm N.

Firm M probably has a higher dividend payout ratio than Firm N.

If the corporate tax rate increases, the debt ratio of both firms is likely to decline.

The two firms are equally likely to pay high dividends.

Firm N is likely to have a clientele of shareholders who want to receive consistent, stable dividend income.

2 points

Question 10

Which of the following statements is correct?

Answer

One disadvantage of dividend reinvestment plans is that they increase transactions costs for investors who want to increase their ownership in the company.

One advantage of dividend reinvestment plans is that they enable investors to postpone paying taxes on the dividends credited to their account.

Stock repurchases can be used by a firm that wants to increase its debt ratio.

Stock repurchases make sense if a company expects to have a lot of profitable new projects to fund over the next few years, provided investors are aware of these investment opportunities.

One advantage of an open market dividend reinvestment plan is that it provides new equity capital and increases the shares outstanding.

2 points

Question 11

Which of the following should not influence a firm's dividend policy decision?

Answer

The firm's ability to accelerate or delay investment projects.

A strong preference by most shareholders for current cash income versus capital gains.

Constraints imposed by the firm's bond indenture.

The fact that much of the firm's equipment has been leased rather than bought and owned.

The fact that Congress is considering changes in the tax law regarding the taxation of dividends versus capital gains.

2 points

Question 12

Which of the following statements is correct?

Answer

If a firm repurchases some of its stock in the open market, then shareholders who sell their stock for more than they paid for it will be subject to capital gains taxes.

An open-market dividend reinvestment plan will be most attractive to companies that need new equity and would otherwise have to issue additional shares of common stock through investment bankers.

Stock repurchases tend to reduce financial leverage.

If a company declares a 2-for-1 stock split, its stock price should roughly double.

One advantage of adopting the residual dividend policy is that this makes it easier for corporations to meet the requirements of Modigliani and Miller's dividend clientele theory.

2 points

Question 13

Which of the following statements is NOT correct?

Answer

Stock repurchases can be used by a firm as part of a plan to change its capital structure.

After a 3-for-1 stock split, a company's price per share should fall, but the number of shares outstanding will rise.

Investors can interpret a stock repurchase program as a signal that the firm's managers believe the stock is undervalued.

Companies can repurchase shares to distribute large inflows of cash, say from the sale of a division, to stockholders without paying cash dividends.

Stockholders pay no income tax on dividends if the dividends are used to purchase stock through a dividend reinvestment plan.

2 points

Question 14

Which of the following actions will best enable a company to raise additional equity capital?

Answer

Refund long-term debt with lower cost short-term debt.

Declare a stock split.

Begin an open-market purchase dividend reinvestment plan.

Initiate a stock repurchase program.

Begin a new-stock dividend reinvestment plan.

2 points

Question 15

Which of the following statements is correct?

Answer

The tax code encourages companies to pay dividends rather than retain earnings.

If a company uses the residual dividend model to determine its dividend payments, dividends payout will tend to increase whenever its profitable investment opportunities increase.

The stronger management thinks the clientele effect is, the more likely the firm is to adopt a strict version of the residual dividend model.

Large stock repurchases financed by debt tend to increase earnings per share, but they also increase the firm's financial risk.

A dollar paid out to repurchase stock is taxed at the same rate as a dollar paid out in dividends. Thus, both companies and investors are indifferent between distributing cash through dividends and stock repurchase programs.

2 points

Question 16

Based on the information below, what is Ezzel Enterprises' optimal capital structure?

Answer

Debt = 40%; Equity = 60%; EPS = $2.95; Stock price = $26.50.

Debt = 50%; Equity = 50%; EPS = $3.05; Stock price = $28.90.

Debt = 60%; Equity = 40%; EPS = $3.18; Stock price = $31.20.

Debt = 80%; Equity = 20%; EPS = $3.42; Stock price = $30.40.

Debt = 70%; Equity = 30%; EPS = $3.31; Stock price = $30.00.

2 points

Question 17

Which of the following events is likely to encourage a company to raise its target debt ratio, other things held constant?

Answer

An increase in the corporate tax rate.

An increase in the personal tax rate.

An increase in the company's operating leverage.

The Federal Reserve tightens interest rates in an effort to fight inflation.

The company's stock price hits a new high.

2 points

Question 18

If debt financing is used, which of the following is CORRECT?

Answer

The percentage change in net operating income will be greater than a given percentage change in net income.

The percentage change in net operating income will be equal to a given percentage change in net income.

The percentage change in net income relative to the percentage change in net operating income will depend on the interest rate charged on debt.

The percentage change in net income will be greater than the percentage change in net operating income.

The percentage change in sales will be greater than the percentage change in EBIT, which in turn will be greater than the percentage change in net income.

2 points

Question 19

Which of the following statements is CORRECT? As a firm increases the operating leverage used to produce a given quantity of output, this will

Answer

normally lead to an increase in its fixed assets turnover ratio.

normally lead to a decrease in its business risk.

normally lead to a decrease in the standard deviation of its expected EBIT.

normally lead to a decrease in the variability of its expected EPS.

normally lead to a reduction in its fixed assets turnover ratio.

2 points

Question 20

Business risk is affected by a firm's operations. Which of the following is NOT associated with (or does not contribute to) business risk?

Answer

Demand variability.

Sales price variability.

The extent to which operating costs are fixed.

The extent to which interest rates on the firm's debt fluctuate.

Input price variability.

2 points

Question 21

Firms U and L each have the same amount of assets, and both have a basic earning power ratio of 20%. Firm U is unleveraged, i.e., it is 100% equity financed, while Firm L is financed with 50% debt and 50% equity. Firm L's debt has a before-tax cost of 8%. Both firms have positive net income. Which of the following statements is CORRECT?

Answer

The two companies have the same times interest earned (TIE) ratio.

Firm L has a lower ROA than Firm U.

Firm L has a lower ROE than Firm U.

Firm L has the higher times interest earned (TIE) ratio.

Firm L has a higher EBIT than Firm U.

2 points

Question 22

Which of the following statements is CORRECT, holding other things constant?

Answer

Firms whose assets are relatively liquid tend to have relatively low bankruptcy costs, hence they tend to use relatively little debt.

An increase in the personal tax rate is likely to increase the debt ratio of the average corporation.

If changes in the bankruptcy code make bankruptcy less costly to corporations, then this would likely reduce the debt ratio of the average corporation.

An increase in the company's degree of operating leverage is likely to encourage a company to use more debt in its capital structure.

An increase in the corporate tax rate is likely to encourage a company to use more debt in its capital structure.

2 points

Question 23

Which of the following statements is CORRECT?

Answer

Since debt financing raises the firm's financial risk, increasing a company's debt ratio will always increase its WACC.

Since debt financing is cheaper than equity financing, raising a company's debt ratio will always reduce its WACC.

Increasing a company's debt ratio will typically reduce the marginal cost of both debt and equity financing. However, this action still may raise the company's WACC.

Increasing a company's debt ratio will typically increase the marginal cost of both debt and equity financing. However, this action still may lower the company's WACC.

Since a firm's beta coefficient it not affected by its use of financial leverage, leverage does not affect the cost of equity.

2 points

Question 24

Volga Publishing is considering a proposed increase in its debt ratio, which would also increase the company's interest expense. The plan would involve issuing new bonds and using the proceeds to buy back shares of its common stock. The company's CFO thinks the plan will not change total assets or operating income, but that it will increase earnings per share (EPS). Assuming the CFO's estimates are correct, which of the following statements is CORRECT?

Answer

Since the proposed plan increases Volga's financial risk, the company's stock price still might fall even if EPS increases.

If the plan reduces the WACC, the stock price is also likely to decline.

Since the plan is expected to increase EPS, this implies that net income is also expected to increase.

If the plan does increase the EPS, the stock price will automatically increase at the same rate.

Under the plan there will be more bonds outstanding, and that will increase their liquidity and thus lower the interest rate on the currently outstanding bonds.

2 points

Question 25

The firm's target capital structure should be consistent with which of the following statements?

Answer

Maximize the earnings per share (EPS).

Minimize the cost of debt (rd).

Obtain the highest possible bond rating.

Minimize the cost of equity (rs).

Minimize the weighted average cost of capital (WACC).

2 points

Question 26

Which of the following statements is CORRECT?

Answer

If corporate tax rates were decreased while other things were held constant, and if the Modigliani-Miller tax-adjusted tradeoff theory of capital structure were correct, this would tend to cause corporations to decrease their use of debt.

A change in the personal tax rate should not affect firms' capital structure decisions.

"Business risk" is differentiated from "financial risk" by the fact that financial risk reflects only the use of debt, while business risk reflects both the use of debt and such factors as sales variability, cost variability, and operating leverage.

The optimal capital structure is the one that simultaneously (1) maximizes the price of the firm's stock, (2) minimizes its WACC, and (3) maximizes its EPS.

If changes in the bankruptcy code make bankruptcy less costly to corporations, then this would likely reduce the debt ratio of the average corporation.

2 points

Question 27

Companies HD and LD have identical tax rates, total assets, and basic earning power ratios, and their basic earning power exceeds their before-tax cost of debt, rd. However, Company HD has a higher debt ratio and thus more interest expense than Company LD. Which of the following statements is CORRECT?

Answer

Company HD has a higher net income than Company LD.

Company HD has a lower ROA than Company LD.

Company HD has a lower ROE than Company LD.

The two companies have the same ROA.

The two companies have the same ROE.

2 points

Question 28

Which of the following statements is CORRECT?

Answer

As a rule, the optimal capital structure is found by determining the debt-equity mix that maximizes expected EPS.

The optimal capital structure simultaneously maximizes EPS and minimizes the WACC.

The optimal capital structure minimizes the cost of equity, which is a necessary condition for maximizing the stock price.

The optimal capital structure simultaneously minimizes the cost of debt, the cost of equity, and the WACC.

The optimal capital structure simultaneously maximizes stock price and minimizes the WACC.

2 points

Question 29

Which of the following would increase the likelihood that a company would increase its debt ratio, other things held constant?

Answer

An increase in costs incurred when filing for bankruptcy.

An increase in the corporate tax rate.

An increase in the personal tax rate.

The Federal Reserve tightens interest rates in an effort to fight inflation.

The company's stock price hits a new low.

2 points

Question 30

Which of the following statements is CORRECT?

Answer

The capital structure that maximizes expected EPS also maximizes the price per share of common stock.

The capital structure that minimizes the interest rate on debt also maximizes the expected EPS.

The capital structure that minimizes the required return on equity also maximizes the stock price.

The capital structure that minimizes the WACC also maximizes the price per share of common stock.

The capital structure that gives the firm the best credit rating also maximizes the stock price.

 

 

FIN 534 quiz 7 week 8

Business / Economics

2/26/13

Opening Offer: $22.99
Posted by: orchid
Date Posted: 2/26/13 9:39 AM
Due Date: 2/25/13

.A company expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital that it must raise. Which of the following conditions would cause the AFN to increase?

Answer

The company previously thought its fixed assets were being operated at full capacity, but now it learns that it actually has excess capacity.

The company increases its dividend payout ratio.

The company begins to pay employees monthly rather than weekly.

The company's profit margin increases.

The company decides to stop taking discounts on purchased materials.

Which of the following statements is CORRECT?

Answer

Once a firm has defined its purpose, scope, and objectives, it must develop a strategy or strategies for achieving its goals. The statement of corporate strategies sets forth detailed plans rather than broad approaches for achieving a firm's goals.

A firm's corporate purpose states the general philosophy of the business and provides managers with specific operational objectives.

Operating plans provide management with detailed implementation guidance, consistent with the corporate strategy, to help meet the corporate objectives. These operating plans can be developed for any time horizon, but many companies use a 5-year horizon.

A firm's mission statement defines its lines of business and geographic area of operations.

The corporate scope is a condensed version of the entire set of strategic plans.

Last year Wei Guan Inc. had $350 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity. In millions, by how much could Wei Guan's sales increase before it is required to increase its fixed assets?

Answer

$170.09

$179.04

$188.46

$197.88

$207.78

Last year Godinho Corp. had $250 million of sales, and it had $75 million of fixed assets that were being operated at 80% of capacity. In millions, how large could sales have been if the company had operated at full capacity?

Answer

$312.5

$328.1

$344.5

$361.8

$379.8

The term "additional funds needed (AFN)" is generally defined as follows:

Answer

Funds that are obtained automatically from routine business transactions.

Funds that a firm must raise externally from non-spontaneous sources, i.e., by borrowing or by selling new stock to support operations.

The amount of assets required per dollar of sales.

The amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth.

A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.

Spontaneous funds are generally defined as follows:

Answer

Assets required per dollar of sales.

A forecasting approach in which the forecasted percentage of sales for each item is held constant.

Funds that a firm must raise externally through short-term or long-term borrowing and/or by selling new common or preferred stock.

Funds that arise out of normal business operations from its suppliers, employees, and the government, and they include immediate increases in accounts payable, accrued wages, and accrued taxes.

The amount of cash raised in a given year minus the amount of cash needed to finance the additional capital expenditures and working capital needed to support the firm's growth.

Which of the following statements is CORRECT?

Answer

Any forecast of financial requirements involves determining how much money the firm will need, and this need is determined by adding together increases in assets and spontaneous liabilities and then subtracting operating income.

The AFN equation for forecasting funds requirements requires only a forecast of the firm's balance sheet. Although a forecasted income statement may help clarify the results, income statement data are not essential because funds needed relate only to the balance sheet.

Dividends are paid with cash taken from the accumulated retained earnings account, hence dividend policy does not affect the AFN forecast.

A negative AFN indicates that retained earnings and spontaneous liabilities are far more than sufficient to finance the additional assets needed.

If the ratios of assets to sales and spontaneous liabilities to sales do not remain constant, then the AFN equation will provide more accurate forecasts than the forecasted financial statements method.

Jefferson City Computers has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the following factors is most likely to lead to an increase of the additional funds needed (AFN)?

Answer

A sharp increase in its forecasted sales.

A switch to a just-in-time inventory system and outsourcing production.

The company reduces its dividend payout ratio.

The company switches its materials purchases to a supplier that sells on terms of 1/5, net 90, from a supplier whose terms are 3/15, net 35.

The company discovers that it has excess capacity in its fixed assets.

Which of the following is NOT a key element in strategic planning as it is described in the text?

Answer

The mission statement.

The statement of the corporation's scope.

The statement of cash flows.

The statement of corporate objectives.

The corporation's strategies.

Which of the following statements is CORRECT?

Answer

Since accounts payable and accrued liabilities must eventually be paid off, as these accounts increase, AFN as calculated by the AFN equation must also increase.

Suppose a firm is operating its fixed assets at below 100% of capacity, but it has no excess current assets. Based on the AFN equation, its AFN will be larger than if it had been operating with excess capacity in both fixed and current assets.

If a firm retains all of its earnings, then it cannot require any additional funds to support sales growth.

Additional funds needed (AFN) are typically raised using a combination of notes payable, long-term debt, and common stock. Such funds are non-spontaneous in the sense that they require explicit financing decisions to obtain them.

If a firm has a positive free cash flow, then it must have either a zero or a negative AFN.

Which of the following statements is CORRECT?

Answer

When we use the AFN equation, we assume that the ratios of assets and liabilities to sales (A0*/S0 and L0*/S0) vary from year to year in a stable, predictable manner.

When fixed assets are added in large, discrete units as a company grows, the assumption of constant ratios is more appropriate than if assets are relatively small and can be added in small increments as sales grow.

Firms whose fixed assets are "lumpy" frequently have excess capacity, and this should be accounted for in the financial forecasting process.

For a firm that uses lumpy assets, it is impossible to have small increases in sales without expanding fixed assets.

There are economies of scale in the use of many kinds of assets. When economies occur the ratios are likely to remain constant over time as the size of the firm increases. The Economic Ordering Quantity model for establishing inventory levels demonstrates this relationship.

Which of the following is NOT one of the steps taken in the financial planning process?

Answer

Forecast the funds that will be generated internally. If internal funds are insufficient to cover the required new investment, then identify sources from which the required external capital can be raised.

Monitor operations after implementing the plan to spot any deviations and then take corrective actions.

Determine the amount of capital that will be needed to support the plan.

Develop a set of forecasted financial statements under alternative versions of the operating plan in order to analyze the effects of different operating procedures on projected profits and financial ratios.

Consult with key competitors about the optimal set of prices to charge, i.e., the prices that will maximize profits for our firm and its competitors.

Last year Handorf-Zhu Inc. had $850 million of sales, and it had $425 million of fixed assets that were used at only 60% of capacity. What is the maximum sales growth rate the company could achieve before it had to increase its fixed assets?

Answer

54.30%

57.16%

60.17%

63.33%

66.67%

Which of the following assumptions is embodied in the AFN equation?

Answer

None of the firm's ratios will change.

Accounts payable and accruals are tied directly to sales.

Common stock and long-term debt are tied directly to sales.

Fixed assets, but not current assets, are tied directly to sales.

Last year's total assets were not optimal for last year's sales.

Which of the following statements is CORRECT?

Answer

The sustainable growth rate is the maximum achievable growth rate without the firm having to raise external funds. In other words, it is the growth rate at which the firm's AFN equals zero.

If a firm's assets are growing at a positive rate, but its retained earnings are not increasing, then it would be impossible for the firm's AFN to be negative.

If a firm increases its dividend payout ratio in anticipation of higher earnings, but sales and earnings actually decrease, then the firm's actual AFN must, mathematically, exceed the previously calculated AFN.

Higher sales usually require higher asset levels, and this leads to what we call AFN. However, the AFN will be zero if the firm chooses to retain all of its profits, i.e., to have a zero dividend payout ratio.

Dividend policy does not affect the requirement for external funds based on the AFN equation.

Which of the following statements is NOT CORRECT?

Answer

The corporate valuation model can be used both for companies that pay dividends and those that do not pay dividends.

The corporate valuation model discounts free cash flows by the required return on equity.

The corporate valuation model can be used to find the value of a division.

An important step in applying the corporate valuation model is forecasting the firm's pro forma financial statements.

Free cash flows are assumed to grow at a constant rate beyond a specified date in order to find the horizon, or terminal, value.

Leak Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2, what is the Year 0 value of operations, in millions? Assume that the ROIC is expected to remain constant in Year 2 and beyond (and do not make any half-year adjustments).

Year: 1 2

Free cash flow: -$50 $100

Answer

$1,456

$1,529

$1,606

$1,686

$1,770

Akyol Corporation is undergoing a restructuring, and its free cash flows are expected to be unstable during the next few years. However, FCF is expected to be $50 million in Year 5, i.e., FCF at t = 5 equals $50 million, and the FCF growth rate is expected to be constant at 6% beyond that point. If the weighted average cost of capital is 12%, what is the horizon value (in millions) at t = 5?

Answer

$719

$757

$797

$839

$883

Based on the corporate valuation model, the value of a company's operations is $900 million. Its balance sheet shows $70 million in accounts receivable, $50 million in inventory, $30 million in short-term investments that are unrelated to operations, $20 million in accounts payable, $110 million in notes payable, $90 million in long-term debt, $20 million in preferred stock, $140 million in retained earnings, and $280 million in total common equity. If the company has 25 million shares of stock outstanding, what is the best estimate of the stock's price per share?

Answer

$23.00

$25.56

$28.40

$31.24

$34.36

Suppose Leonard, Nixon, & Shull Corporation's projected free cash flow for next year is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company's weighted average cost of capital is 11%, what is the value of its operations?

Answer

$1,714,750

$1,805,000

$1,900,000

$2,000,000

$2,100,000

Based on the corporate valuation model, Bernile Inc.'s value of operations is $750 million. Its balance sheet shows $50 million of short-term investments that are unrelated to operations, $100 million of accounts payable, $100 million of notes payable, $200 million of long-term debt, $40 million of common stock (par plus paid-in-capital), and $160 million of retained earnings. What is the best estimate for the firm's value of equity, in millions?

Answer

$429

$451

$475

$500

$525

Zhdanov Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?

Answer

$158

$167

$175

$184

$193

Which of the following does NOT always increase a company's market value?

Answer

Increasing the expected growth rate of sales.

Increasing the expected operating profitability (NOPAT/Sales).

Decreasing the capital requirements (Capital/Sales).

Decreasing the weighted average cost of capital.

Increasing the expected rate of return on invested capital.

Based on the corporate valuation model, the value of a company's operations is $1,200 million. The company's balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in short-term investments that are unrelated to operations. The balance sheet also shows $90 million in accounts payable, $120 million in notes payable, $300 million in long-term debt, $50 million in preferred stock, $180 million in retained earnings, and $800 million in total common equity. If the company has 30 million shares of stock outstanding, what is the best estimate of the stock's price per share?

Answer

$24.90

$27.67

$30.43

$33.48

$36.82

Simonyan Inc. forecasts a free cash flow of $40 million in Year 3, i.e., at t = 3, and it expects FCF to grow at a constant rate of 5% thereafter. If the weighted average cost of capital is 10% and the cost of equity is 15%, what is the horizon value, in millions at t = 3?

Answer

$840

$882

$926

$972

$1,021

Based on the corporate valuation model, Hunsader's value of operations is $300 million. The balance sheet shows $20 million of short-term investments that are unrelated to operations, $50 million of accounts payable, $90 million of notes payable, $30 million of long-term debt, $40 million of preferred stock, and $100 million of common equity. The company has 10 million shares of stock outstanding. What is the best estimate of the stock's price per share?

Answer

$13.72

$14.44

$15.20

$16.00

$16.80

A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs are expected to continue growing at a 5% rate after Year 3. Assuming that the ROIC is expected to remain constant in Year 3 and beyond, what is the Year 0 value of operations, in millions?

Year: 1 2 3

Free cash flow: -$15 $10 $40

Answer

$315

$331

$348

$367

$386

Suppose Yon Sun Corporation's free cash flow during the just-ended year (t = 0) was $100 million, and FCF is expected to grow at a constant rate of 5% in the future. If the weighted average cost of capital is 15%, what is the firm's value of operations, in millions?

Answer

$948

$998

$1,050

$1,103

$1,158

Which of the following is NOT normally regarded as being a good reason to establish an ESOP?

Answer

To increase worker productivity.

To enable the firm to borrow at a below-market interest rate.

To make it easier to grant stock options to employees.

To help prevent a hostile takeover.

To help retain valued employees.

Which of the following is NOT normally regarded as being a barrier to hostile takeovers?

Answer

Abnormally high executive compensation.

Targeted share repurchases.

Shareholder rights provisions.

Restricted voting rights.

Poison pills.

 

 

FIN 534 quiz 6 week 7

Business / Economics

2/26/13

Opening Offer: $22.99
Posted by: orchid
Date Posted: 2/26/13 9:33 AM
Due Date: 2/25/13

.Question 1

Which of the following statements is CORRECT?

Answer

One advantage of the NPV over the IRR is that NPV takes account of cash flows over a project's full life whereas IRR does not.

One advantage of the NPV over the IRR is that NPV assumes that cash flows will be reinvested at the WACC, whereas IRR assumes that cash flows are reinvested at the IRR. The NPV assumption is generally more appropriate.

One advantage of the NPV over the MIRR method is that NPV takes account of cash flows over a project's full life whereas MIRR does not.

One advantage of the NPV over the MIRR method is that NPV discounts cash flows whereas the MIRR is based on undiscounted cash flows.

Since cash flows under the IRR and MIRR are both discounted at the same rate (the WACC), these two methods always rank mutually exclusive projects in the same order.

2 points

Question 2

Westchester Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A has an IRR of 11%, while Project B's IRR is 14%. When the WACC is 8%, the projects have the same NPV. Given this information, which of the following statements is CORRECT?

Answer

If the WACC is 13%, Project A's NPV will be higher than Project B's.

f the WACC is 9%, Project A's NPV will be higher than Project B's.

If the WACC is 6%, Project B's NPV will be higher than Project A's.

If the WACC is greater than 14%, Project A's IRR will exceed Project B's.

If the WACC is 9%, Project B's NPV will be higher than Project A's.

Question 3

Four of the following statements are truly disadvantages of the regular payback method, but one is not a disadvantage of this method. Which one is NOT

a disadvantage of the payback method?

Answer

Lacks an objective, market-determined benchmark for making decisions.

Ignores cash flows beyond the payback period.

Does not directly account for the time value of money.

Does not provide any indication regarding a project's liquidity or risk.

Does not take account of differences in size among projects.

2 points

Question 4

Projects S and L are equally risky, mutually exclusive, and have normal cash flows. Project S has an IRR of 15%, while Project L's IRR is 12%. The two projects have the same NPV when the WACC is 7%. Which of the following statements is CORRECT?

Answer

If the WACC is 10%, both projects will have positive NPVs.

If the WACC is 6%, Project S will have the higher NPV.

If the WACC is 13%, Project S will have the lower NPV.

If the WACC is 10%, both projects will have a negative NPV.

Project S's NPV is more sensitive to changes in WACC than Project L's.

Question 5

Assume that the economy is enjoying a strong boom, and as a result interest rates and money costs generally are relatively high. The WACC for two mutually exclusive projects that are being considered is 12%. Project S has an IRR of 20% while Project L's IRR is 15%. The projects have the same NPV at the 12% current WACC. However, you believe that the economy will soon fall into a mild recession, and money costs and thus your WACC will soon decline. You also think that the projects will not be funded until the WACC has decreased, and their cash flows will not be affected by the change in economic conditions. Under these conditions, which of the following statements is CORRECT?

Answer

You should reject both projects because they will both have negative NPVs under the new conditions.

You should delay a decision until you have more information on the projects, even if this means that a competitor might come in and capture this market.

You should recommend Project L, because at the new WACC it will have the higher NPV.

You should recommend Project S, because at the new WACC it will have the higher NPV.

You should recommend Project L because it will have both a higher IRR and a higher NPV under the new conditions.

2 points

Question 6

Which of the following statements is CORRECT?

Answer

The MIRR and NPV decision criteria can never conflict.

The IRR method can never be subject to the multiple IRR problem, while the MIRR method can be.

One reason some people prefer the MIRR to the regular IRR is that the MIRR is based on a generally more reasonable reinvestment rate assumption.

The higher the WACC, the shorter the discounted payback period.

The MIRR method assumes that cash flows are reinvested at the crossover rate.

Question 7

Which of the following statements is CORRECT?

Answer

The NPV, IRR, MIRR, and discounted payback (using a payback requirement of 3 years or less) methods always lead to the same accept/reject decisions for independent projects.

For mutually exclusive projects with normal cash flows, the NPV and MIRR methods can never conflict, but their results could conflict with the discounted payback and the regular IRR methods.

Multiple IRRs can exist, but not multiple MIRRs. This is one reason some people favor the MIRR over the regular IRR.

If a firm uses the discounted payback method with a required payback of 4 years, then it will accept more projects than if it used a regular payback of 4 years.

The percentage difference between the MIRR and the IRR is equal to the project's WACC.

2 points

Question 8

Which of the following statements is CORRECT?

Answer

The shorter a project's payback period, the less desirable the project is normally considered to be by this criterion.

One drawback of the regular payback is that this method does not take account of cash flows beyond the payback period.

If a project's payback is positive, then the project should be accepted because it must have a positive NPV.

The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.

One drawback of the discounted payback is that this method does not consider the time value of money, while the regular payback overcomes this drawback.

Question 9

Which of the following statements is CORRECT?

Answer

The IRR method appeals to some managers because it gives an estimate of the rate of return on projects rather than a dollar amount, which the NPV method provides.

The discounted payback method eliminates all of the problems associated with the payback method.

When evaluating independent projects, the NPV and IRR methods often yield conflicting results regarding a project's acceptability.

To find the MIRR, we discount the TV at the IRR.

A project's NPV profile must intersect the X-axis at the project's WACC.

2 points

Question 10

Which of the following statements is CORRECT?

Answer

The NPV method assumes that cash flows will be reinvested at the WACC, while the IRR method assumes reinvestment at the IRR.

The NPV method assumes that cash flows will be reinvested at the risk-free rate, while the IRR method assumes reinvestment at the IRR.

The NPV method assumes that cash flows will be reinvested at the WACC, while the IRR method assumes reinvestment at the risk-free rate.

The NPV method does not consider all relevant cash flows, particularly cash flows beyond the payback period.

The IRR method does not consider all relevant cash flows, particularly cash flows beyond the payback period.

Question 11

Assume that the economy is in a mild recession, and as a result interest rates and money costs generally are relatively low. The WACC for two mutually exclusive projects that are being considered is 8%. Project S has an IRR of 20% while Project L's IRR is 15%. The projects have the same NPV at the 8% current WACC. However, you believe that the economy is about to recover, and money costs and thus your WACC will also increase. You also think that the projects will not be funded until the WACC has increased, and their cash flows will not be affected by the change in economic conditions. Under these conditions, which of the following statements is CORRECT?

Answer

You should reject both projects because they will both have negative NPVs under the new conditions.

You should delay a decision until you have more information on the projects, even if this means that a competitor might come in and capture this market.

You should recommend Project L, because at the new WACC it will have the higher NPV.

You should recommend Project S, because at the new WACC it will have the higher NPV.

You should recommend Project S because it has the higher IRR and will continue to have the higher IRR even at the new WACC.

2 points

Question 12

Which of the following statements is CORRECT?

Answer

One defect of the IRR method is that it does not take account of cash flows over a project's full life.

One defect of the IRR method is that it does not take account of the time value of money.

One defect of the IRR method is that it does not take account of the cost of capital.

One defect of the IRR method is that it values a dollar received today the same as a dollar that will not be received until sometime in the future.

One defect of the IRR method is that it assumes that the cash flows to be received from a project can be reinvested at the IRR itself, and that assumption is often not valid.

Question 13

Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.

Answer

A project's NPV is generally found by compounding the cash inflows at the WACC to find the terminal value (TV), then discounting the TV at the IRR to find its PV.

The higher the WACC used to calculate the NPV, the lower the calculated NPV will be.

If a project's NPV is greater than zero, then its IRR must be less than the WACC.

If a project's NPV is greater than zero, then its IRR must be less than zero.

The NPVs of relatively risky projects should be found using relatively low WACCs.

2 points

Question 14

Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.

Answer

The longer a project's payback period, the more desirable the project is normally considered to be by this criterion.

One drawback of the regular payback for evaluating projects is that this method does not properly account for the time value of money.

If a project's payback is positive, then the project should be rejected because it must have a negative NPV.

The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.

If a company uses the same payback requirement to evaluate all projects, say it requires a payback of 4 years or less, then the company will tend to reject projects with relatively short lives and accept long-lived projects, and this will cause its risk to increase over time.

Question 15

Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.

Answer

A project's regular IRR is found by compounding the cash inflows at the WACC to find the terminal value (TV), then discounting this TV at the WACC.

A project's regular IRR is found by discounting the cash inflows at the WACC to find the present value (PV), then compounding this PV to find the IRR.

If a project's IRR is greater than the WACC, then its NPV must be negative.

To find a project's IRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the project's costs.

To find a project's IRR, we must find a discount rate that is equal to the WACC.

2 points

Question 16

Which of the following statements is CORRECT?

Answer

An externality is a situation where a project would have an adverse effect on some other part of the firm's overall operations. If the project would have a favorable effect on other operations, then this is not an externality.

An example of an externality is a situation where a bank opens a new office, and that new office causes deposits in the bank's other offices to increase.

The NPV method automatically deals correctly with externalities, even if the externalities are not specifically identified, but the IRR method does not. This is another reason to favor the NPV.

Both the NPV and IRR methods deal correctly with externalities, even if the externalities are not specifically identified. However, the payback method does not.

Identifying an externality can never lead to an increase in the calculated NPV.

Question 17

Which of the following statements is CORRECT?

Answer

A sunk cost is any cost that must be expended in order to complete a project and bring it into operation.

A sunk cost is any cost that was expended in the past but can be recovered if the firm decides not to go forward with the project.

A sunk cost is a cost that was incurred and expensed in the past and cannot be recovered if the firm decides not to go forward with the project.

Sunk costs were formerly hard to deal with but now that the NPV method is widely used, it is possible to simply include sunk costs in the cash flows and then calculate the PV of the project.

A good example of a sunk cost is a situation where Home Depot opens a new store, and that leads to a decline in sales of one of the firm's existing stores.

2 points

Question 18

Which of the following statements is CORRECT?

Answer

An example of a sunk cost is the cost associated with restoring the site of a strip mine once the ore has been depleted.

Sunk costs must be considered if the IRR method is used but not if the firm relies on the NPV method.

A good example of a sunk cost is a situation where a bank opens a new office, and that new office leads to a decline in deposits of the bank's other offices.

A good example of a sunk cost is money that a banking corporation spent last year to investigate the site for a new office, then expensed that cost for tax purposes, and now is deciding whether to go forward with the project.

If sunk costs are considered and reflected in a project's cash flows, then the project's calculated NPV will be higher than it otherwise would be.

Question 19

Which of the following statements is CORRECT?

Answer

In a capital budgeting analysis where part of the funds used to finance the project would be raised as debt, failure to include interest expense as a cost when determining the project's cash flows will lead to an upward

bias in the NPV.

In a capital budgeting analysis where part of the funds used to finance the project would be raised as debt, failure to include interest expense as a cost when determining the project's cash flows will lead to a downward

bias in the NPV.

The existence of any type of "externality" will reduce the calculated NPV versus the NPV that would exist without the externality.

If one of the assets to be used by a potential project is already owned by the firm, and if that asset could be sold or leased to another firm if the new project were not undertaken, then the net after-tax proceeds that could be obtained should be charged as a cost to the project under consideration.

If one of the assets to be used by a potential project is already owned by the firm but is not being used, then any costs associated with that asset is a sunk cost and should be ignored.

2 points

Question 20

Which of the following statements is CORRECT?

Answer

Sensitivity analysis is a good way to measure market risk because it explicitly takes into account diversification effects.

One advantage of sensitivity analysis relative to scenario analysis is that it explicitly takes into account the probability of specific effects occurring, whereas scenario analysis cannot account for probabilities.

Well-diversified stockholders do not need to consider market risk when determining required rates of return.

Market risk is important, but it does not have a direct effect on stock prices because it only affects beta.

Simulation analysis is a computerized version of scenario analysis where input variables are selected randomly on the basis of their probability distributions.

Question 21

Which of the following factors should be included in the cash flows used to estimate a project's NPV?

Answer

All costs associated with the project that have been incurred prior to the time the analysis is being conducted.

Interest on funds borrowed to help finance the project.

The end-of-project recovery of any working capital required to operate the project.

Cannibalization effects, but only if those effects increase the project's projected cash flows.

Expenditures to date on research and development related to the project, provided those costs have already been expensed for tax purposes.

2 points

Question 22

Which of the following should be considered when a company estimates the cash flows used to analyze a proposed project?

Answer

The new project is expected to reduce sales of one of the company's existing products by 5%.

Since the firm's director of capital budgeting spent some of her time last year to evaluate the new project, a portion of her salary for that year should be charged to the project's initial cost.

The company has spent and expensed $1 million on R&D associated with the new project.

The company spent and expensed $10 million on a marketing study before its current analysis regarding whether to accept or reject the project.

The firm would borrow all the money used to finance the new project, and the interest on this debt would be $1.5 million per year.

Question 23

The relative risk of a proposed project is best accounted for by which of the following procedures?

Answer

Adjusting the discount rate upward if the project is judged to have above-average risk.

Adjusting the discount rate downward if the project is judged to have above-average risk.

Reducing the NPV by 10% for risky projects.

Picking a risk factor equal to the average discount rate.

Ignoring risk because project risk cannot be measured accurately.

2 points

Question 24

Rowell Company spent $3 million two years ago to build a plant for a new product. It then decided not to go forward with the project, so the building is available for sale or for a new product. Rowell owns the building free and clear--there is no mortgage on it. Which of the following statements is CORRECT?

Answer

Since the building has been paid for, it can be used by another project with no additional cost. Therefore, it should not be reflected in the cash flows for any new project.

If the building could be sold, then the after-tax proceeds that would be generated by any such sale should be charged as a cost to any new project that would use it.

This is an example of an externality, because the very existence of the building affects the cash flows for any new project that Rowell might consider.

Since the building was built in the past, its cost is a sunk cost and thus need not be considered when new projects are being evaluated, even if it would be used by those new projects.

If there is a mortgage loan on the building, then the interest on that loan would have to be charged to any new project that used the building.

Question 25

Suppose Tapley Inc. uses a WACC of 8% for below-average risk projects, 10% for average-risk projects, and 12% for above-average risk projects. Which of the following independent projects should Tapley accept, assuming that the company uses the NPV method when choosing projects?

Answer

Project A, which has average risk and an IRR = 9%.

Project B, which has below-average risk and an IRR = 8.5%.

Project C, which has above-average risk and an IRR = 11%.

Without information about the projects' NPVs we cannot determine which project(s) should be accepted.

All of these projects should be accepted.

2 points

Question 26

Which one of the following would NOT result in incremental cash flows and thus should NOT be included in the capital budgeting analysis for a new product?

Answer

Using some of the firm's high-quality factory floor space that is currently unused to produce the proposed new product. This space could be used for other products if it is not used for the project under consideration.

Revenues from an existing product would be lost as a result of customers switching to the new product.

Shipping and installation costs associated with a machine that would be used to produce the new product.

The cost of a study relating to the market for the new product that was completed last year. The results of this research were positive, and they led to the tentative decision to go ahead with the new product. The cost of the research was incurred and expensed for tax purposes last year.

It is learned that land the company owns and would use for the new project, if it is accepted, could be sold to another firm.

Question 27

Which one of the following would NOT result in incremental cash flows and thus should NOT be included in the capital budgeting analysis for a new product?

Answer

A firm has a parcel of land that can be used for a new plant site or be sold, rented, or used for agricultural purposes.

A new product will generate new sales, but some of those new sales will be from customers who switch from one of the firm's current products.

A firm must obtain new equipment for the project, and $1 million is required for shipping and installing the new machinery.

A firm has spent $2 million on R&D associated with a new product. These costs have been expensed for tax purposes, and they cannot be recovered regardless of whether the new project is accepted or rejected.

A firm can produce a new product, and the existence of that product will stimulate sales of some of the firm's other products.

2 points

Question 28

A company is considering a new project. The CFO plans to calculate the project's NPV by estimating the relevant cash flows for each year of the project's life (i.e., the initial investment cost, the annual operating cash flows, and the terminal cash flow), then discounting those cash flows at the company's overall WACC. Which one of the following factors should the CFO be sure to INCLUDE in the cash flows when estimating the relevant cash flows?

Answer

All sunk costs that have been incurred relating to the project.

All interest expenses on debt used to help finance the project.

The investment in working capital required to operate the project, even if that investment will be recovered at the end of the project's life.

Sunk costs that have been incurred relating to the project, but only if those costs were incurred prior to the current year.

Effects of the project on other divisions of the firm, but only if those effects lower the project's own direct cash flows.

Question 29

When evaluating a new project, firms should include in the projected cash flows all of the following EXCEPT:

Answer

Changes in net working capital attributable to the project.

Previous expenditures associated with a market test to determine the feasibility of the project, provided those costs have been expensed for tax purposes.

The value of a building owned by the firm that will be used for this project.

A decline in the sales of an existing product, provided that decline is directly attributable to this project.

The salvage value of assets used for the project that will be recovered at the end of the project's life.

2 points

Question 30

Which of the following statements is CORRECT?

Answer

Using accelerated depreciation rather than straight line would normally have no effect on a project's total projected cash flows but it would affect the timing of the cash flows and thus the NPV.

Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer.

Corporations must use the same depreciation method (e.g., straight line or accelerated) for stockholder reporting and tax purposes.

Since depreciation is not a cash expense, it has no effect on cash flows and thus no effect on capital budgeting decisions.

Under accelerated depreciation, higher depreciation charges occur in the early years, and this reduces the early cash flows and thus lowers a project's projected NPV.

 

fontdTiy3h2sans-serif; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 23px; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; background-position: initial initial; background-repeat: initial initial;">Since depreciation is not a cash expense, it has no effect on cash flows and thus no effect on capital budgeting decisions.

 

Under accelerated depreciation, higher depreciation charges occur in the early years, and this reduces the early cash flows and thus lowers a project's projected NPV.

 

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