bus 475 final exam step-2
bus 475 final exam step-2
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Date Created: 11/07/15
BUS 475 Final Exam QUESTIONS WITH ANSWERS 52) Suppose the estimated quadratic model Yt = 500 + 20 t t2 is the best fitting trend of sales of XYZ Inc. using data for the past twenty years (t = 1, 2,.., 20). Which statement is incorrect? A. Sales are increasing by about 20 units per year. B. The turning point would be in period 10. C. The trend was higher in year 10 than in year 20. D. Latest year sales are no better than in year zero. 53) Which of the following statements is correct? A. Advances in information technologies have not affected individual privacy B. An individual’s right to privacy is absolute C. It is difficult to determine and enforce privacy regulations D. An individual’s right to privacy supersedes the needs of society E. The Internet has increased individuals’ privacy 54) The Global, WebBased Platform enables individuals to do which of the following? A. produce and sell goods and services B. connect, compute, communicate, collaborate, and compete everywhere and all the time C. access information, services, and entertainment D. exchange knowledge E. all of these are true 55) It is very difficult to manage data for which of the following reasons? A. data security is easy to maintain B. amount of data stays about the same over time C. data are scattered throughout organizations D. decreasing amount of external data needs to be considered E. data are stored in the same format throughout organizations 56) Success in the _____ phase of the decision making process results in resolving the original problem, and failure leads to a return to previous phases. A. implementation B. choice C. design D. intelligence E. consideration 57) When customers access a Web site and make purchases, they generate __________. A. Web data B. Tracking cookies C. Information D. Clickstream data E. Hyperlink data 58) _____ is the efficient and effective execution of specific tasks. A. Expertise B. Operational control C. Management control D. Strategic planning E. Wisdom 59) Geocoding is __________. A. integrating organizational transactions with spatially oriented databases B. integrating maps with spatially oriented databases and other databases C. encrypting spatial information D. accessing geographical information E. programming spatially oriented databases 60) Informationbased industries are most susceptible to which one of Porter’s five forces? A. threat of substitute products B. bargaining power of suppliers C. bargaining power of customers D. rivalry among existing firms in an industry 61) International Game Technology’s new ERP system produced all of the following benefits except: A. The company gained flexibility in manufacturing products B. Integrated the company’s business functions C. Company was able to maintain its original business processes D. ERP system connected the company’s global operations E. Operations employees were able to access manufacturing process details at their workstations 62) Credit card companies would most likely use which of the following to check for fraudulent credit card use? A. Data mining B. Expert systems C. Neural networks D. Multidimensional data analysis E. Structured query language 63) A machine costs $1,000, has a threeyear life, and has an estimated salvage value of $100. It will generate aftertax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answerwer to the nearest $10.) A. $570 B. $900 C. $150 D. $490 64) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after tax cost of the firm’s capital (required rate of return) for each source of financing is as follows: Cost of debt 8% Cost of preferred stock 12% Cost of common stock 16% Longterm debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project? A. $871 B. $1,241 C. $1,568 D. $463 65) The common stockholders are most concerned with: A. the size of the firm’s beginning earnings per share. B. the risk of the investment. C. the spread between the return generated on new investments and the investor’s required rate of return. D. the percentage of profits retained 66) Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% of its par value. Par value of TSP preferred stock is $100 per share. If investors’ required rate of return on this stock is 15%, what is the value of per share? A. $15.00 B. $16.67 C. $6.00 D. $37.50 67) Which of the following is most consistent with the hedging principle in working capital management? A. Fixed assets should be financed with shortterm notes payable. B. Inventory should be financed with preferred stock. C. Accounts receivable should be financed with shortterm lines of credit. D. Borrow on a floating rate basis to finance investments in permanent assets. 68) At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years? A. 5% B. 7% C. 8% D. 6% 69) PepsiCo calculates unlevered betas for each peer group in order to: A. eliminate competitive factors. B. eliminate judgment factors. C. eliminate different financial risks. D. eliminate different business risks. 70) According to the hedging principle, permanent assets should be financed with _____ liabilities. A. spontaneous B. current C. fixed D. permanent 71) Bondholders have a priority claim on assets ahead of: A. shareholders. B. investors C. creditors. D. common and preferred stockholders. 72) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period? A. Balance sheet B. Income statement C. Quarterly statement D. Cash flow statement 73) Given the following annual net cash flows, determine the IRR to the nearest whole percent of a project with an initial outlay of $1,520. Year Net Cash Flow 1 $1,000 2 $1,500 3 $ 500 A. 48% B. 32% C. 28% D. 40% 74) Bell Weather, Inc. has a beta of 1.25. The return on the market portfolio is 12.5%, and the riskfree rate is 5%. According to CAPM, what is the required return on this stock? A. 20.62% B. 14.37% C. 15.62% D. 9.37% 75) You hold a portfolio with the following securities: Security Percent of Portfolio Beta Return X Corporation 20% 1.35 14% Y Corporation 35% .95 10% Z Corporation 45% .75 8% Compute the expected return and beta for the portfolio. A. 10.67%, 1.02 B. 34.4%, .94 C. 9.9%, .94 D. 9.9%, 1.02 76) The managerial process of developing and maintaining a match between the resources of an organization and its market opportunities is called: A. marketing programming. B. strategic (management) planning. C. market planning. D. marketing strategy planning. E. management by objective. 77) Analysis of demographic dimensions: A. considers income and sex, but not age. B. can be used along with analysis of other dimensions to identify attractive target markets. C. only considers age. D. is the most effective way to identify unmet consumer needs. E. is the most important step to successful segmentation. 78) When evaluating macromarketing: A. the best approach is to consider the profit generated by individual firms within the overall system. B. one must consider each individual firm's role in the marketing system. C. one must consider the society’s role in the marketing system. D. one must determine how efficiently the society's resources are used. E. the evaluation is necessarily subjective. 79) "Marketing strategy planning" means: A. finding attractive opportunities and selecting a target market. B. selecting an attractive marketing mix. C. selecting a target market and developing a marketing strategy. D. selecting an attractive target market. E. finding attractive opportunities and developing profitable marketing strategies. 80) __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market. A. Customer relationship management (CRM) B. Market segmentation C. Brand familiarity D. Positioning E. Market scanning 81) When doing "positioning," a marketing manager should: A. exclusively use focus groups. B. plan physical product changes rather than image changes. C. avoid targeting strategies. D. focus on specific product features of all generic competitors. E. rely on how customers think about proposed and/or existing brands in a market. 82) In comparison to the buying of final consumers, the purchasing of organizational buyers: A. is always emotional. B. is even less predictable. C. is strictly economic and not at all emotional. D. is always based on competitive bids from multiple suppliers. E. leans basically toward economy, quality, and dependability. 83) The clustering techniques that can be used in segmenting: A. looks for differences between groups of people. B. group people together based on age. C. eliminate the need for management intuition and judgment. D. group people together into heterogeneous productmarket segments. E. try to find similar patterns within sets of data. 84) A firm's "marketing mix" decision areas would NOT include: A. Place. B. Product. C. Promotion. D. People. E. Price. 85) Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that: A. Other countries most likely don’t use the US Dollar as their primary currency. B. GDP measures show the degree of competition in a market. C. GDP measures show people's tendency to buy particular products. D. income tends to be evenly distributed among consumers in most countries. E. GDP estimates may not be very accurate for very different cultures and economies. 86) Regarding organizational buying, the people who have the power to select or approve the supplierespecially for larger purchasesare called: A. users. B. gatekeepers. C. influencers. D. deciders. E. buyers. 87) Clustering techniques applied to segmenting markets __________. A. is time consuming and expensive B. remove the need for managerial judgment C. eliminate the need for marketing managers to specify in advance what dimensions might be relevant for grouping consumers D. usually require computers to group people based on data from market research E. doesn’t apply to demographic data 88) Justin was hired in February of 2004 as a salesperson. There is no written employment contract, and Justin is paid on a commission basis. Justin’s manager has said to Justin on several occasions that if Justin continues to meet his sales quotas, that the company “will keep him around for a long time.” Justin has always met his sales quotas, but is told one day that they have decided to replace him because he does not project the image that the company wants. If Justin is an atwill employee, which of the following is true? A. The statements by the manager could likely give Justin contract rights that could amount to an exception to the atwill doctrine. B. Because there is no written employment contract, the employer can terminate Justin. C. The employer can terminate Justin only if the employer would suffer a loss by not terminating him. D. As an at will employee, there are no restrictions on the employer terminating Justin. E. The employer would not be able to fire Justin on the basis of public policy. 89) Which of the following is correct about litigating commercial disputes? A. Businesses generally dislike the concept of specialized trail courts for commercial disputes because the large numbers of consumers who sue businesses in these courts have led the judges to become generally biased against business. B. Commercial disputes, because of their specialized nature, are first heard at the appellate court level. C. A few states have established specialized trial courts for commercial disputes. D. Nearly all states have specialized trial courts that hear commercial disputes. E. In all states, commercial disputes must be heard in a limitedjurisdiction court. 90) Which article of the United States Constitution deals with the judicial power of the federal government? A. Article IV. B. Article II. C. Article III. D. Article I. E. Article V. 91) Mary arrived at work one day, and her boss said to her, “That’s the ugliest dress I have ever seen. Because you wore that to work today, you are fired.” Assuming that Mary is an atwill employee, which of the following is true? A. Mary can be fired only if it is in the best interest of the employer. B. Mary can be fired for any reason. C. If Mary has the will to work, she cannot be fired without cause. D. If none of the exceptions to the atwill rule apply, Mary can be fired. 92) Which of the following is true about the Sherman Act? A. A business can be liable under either Section 1 or Section 2 without any agreement with another party. B. Liability under Section 1 for restraint of trade requires agreement with another party, but liability under Section 2 for monopolization does not. C. Liability under Section 2 for monopolization requires agreement with another party, but liability under Section 1 for restraint of trade does not. D. Liability under either Section 1 or Section 2 requires agreement with another party. 93) If the value of the collateral is less than the debt owed to the secured party, then: A. The secured party gets to take some other property as collateral so his entire debt is secured. B. The secured party is unsecured for the excess of debt over the value of the security. C. The secured party loses the excess of debt over the value of the security. D. The secured party is still secured for the entire debt owed him. E. The secured party is unsecured for the entire debt. 94) If you are a creditor, your best protection in the event of the debtor’s bankruptcy (including protection from the debtor’s other creditors) is usually obtained if you had previously received: A. A security interest granted by the debtor. B. A written promise from the debtor to pay the debt as agreed. C. Audited financial statements of the debtor. D. The debtor’s agreement to pay you first. 95) Which of the following terms is not required to be disclosed under the TruthinLending Act? A. The amount of attorneys fees to be charged if legal action is needed to collect the debt. B. The number of payments. C. The amount of late charges or delinquency penalties. D. The date the finance charge begins to accrue. E. The annual percentage rage of interest. 96) Which of the following lists, in descending priority, of sources considered by most courts in settling questions of international law? A. Conventions, comity, customs, general principles of law B. Conventions, treaties, comity, customs C. Treaties, customs, conventions, comity D. Treaties, customs, general principles of law, judicial decisions and teachings E. Treaties, customs, conventions, comity 97) Generally speaking, the contract of a minor: A. Is void. B. Is not enforceable by the minor. C. Is voidable at the minor’s option. D. Must be in writing. 98) Although the U.S. has had a longstanding agreement with _____ after the passage of NAFTA, _____ became the United States' second largest trading partner. A. Mexico, Canada B. Mexico, Venezuela C. Great Britain, Paraguay D. Canada, Mexico E. Canada, Venezuela 99) One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States. A. Less than $1; about 25 B. $2; about 25 C. Less than $1; about 40 D. About $2; about 15 E. Less than $1; about 15 100) Which country does the text describe as becoming the largest producer and consumer of many of the world's goods? A. Mexico B. China C. Ecuador D. Canada E. Japan
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