Glo Bus Quiz 2 Questions and Answers
(Quiz 2 with 6 different tests) (Latest
Version) (2023/2024) Combined Exams
with Correct Answers (Graded A)
Quiz 2 Answers – P1
- Which of the following is NOT an action company co-managers can take to help meet or
beat the investor-expected increases in the company’s stock price in upcoming years?
- Making it company practice to issue additional shares of stock each year and use the proceeds
to pay down the debt outstanding until the company’s debt-equity percentages reach 20% or
lower for debt and 80% or more for equity - Increasing annual dividend payments to shareholders most every year
- Making it a frequent management practice to allocate a portion of internal cash flows from
operations to repurchasing shares of the company’s common stock - Putting increased attention on boosting operating profits in all four geographic regions — the
resulting growth in operating profits companywide will act to increase total net profits and EPS;
higher earnings per share are an important driver of the company’s stock price - When the company’s stock price drops because of unexpectedly weak company performance in
the prior year but is expected to recover and rise in the next several decision rounds. opting to
borrow money preferably in the form of 1-year loans from the Global Community Bank (but not
so much as to impair the company’s credit rating) and using the borrowedfunds to repurchase
outstanding shares of common stock
- Which of the following is NOT an action company co-managers can take that has good
potential for increasing the company’s average ROE and helping the company meet or beat
the investorexpected ROE targets in upcoming years?
- Pursuing efforts to boost total operating profits in all four geographic regions — the resulting
growth in operating profits companywide will increase total net profits (a company’s net profits
are the numerator in calculating the company’s ROE) - Paying a small annual dividend to shareholders (less than $0.50 per share) which is
increased annually by about $0.05 per shares; a small but growing dividend provides
the company with more cash to fund capital expenditures and/or pay down bank
borrowings ahead of schedule - Using a portion of the company’s internal cash flows from operations for the next several
years to repurchase shares of common stock - Borrowing money from the Global Community Bank (preferably in the form of a 1-year loan
that can be fully or mostly repaid the following year) and using the proceeds to repurchase
outstanding shares of common stock: such action makes considerable financial sense when the
company’s stock price is expected to rise substantially in future years and/or when unexpectedly
weak company performance in the prior year causes a drop in its stock price
- Increasing annual dividend payments to shareholders (because all net profits not paid out as
dividends are treated as retained earnings and because bigger retained earnings have the effect of
increasing shareholders equity)
- Which one of the following is NOT a way to improve the P/Q rating of a company’s
brand of action-capture cameras?
- Adding one or two more extra performance features
- Increasing the image sensor size and the resolution of the LCD display screen
- Increasing expenditures for camera R&D
- Spending several more dollars on the camera housing and on included accessories
- Increasing the number of models in the company’s lineup of multi-featured cameras
- If a company pays each camera PAT member a base wage of $21,000, thereby resulting
in base wages of $84,000 per 4-person PAT, and if camera PATs work an average of 2,000
hours per year to assemble 3,000 cameras annually, it follows that
- the hourly base wage cost for a PAT to assemble a camera would be $30.00 and that the labor
cost of assembling a camera at overtime would be $60.00 per PAT. - the hourly base wage cost for a PAT to assemble a camera would be $28.00 and that
the labor cost of assembling a camera at overtime would be $42.00 per PAT. - the hourly base wage cost for a PAT to assemble a camera would be $24.00 and that the labor
cost of assembling a camera at overtime would be $36.00 per PAT. - the hourly base wage cost for a PAT to assemble a camera would be $10.50 and that the labor
cost of assembling a camera at overtime would be $15.75 per PAT. - the hourly base wage cost of assembling a camera would be $28.00 and that the labor cost of
assembling a camera at overtime cannot be determined from the available information due to the
lack of information about compensation payments for assembly quality incentives. perfect
attendance bonuses, and the cost of fringe benefit packages
- Actions that can lead to higher labor productivity in assembling cameras/drones do NOT
include
- increasing the annual bonus for perfect attendance paid to cameraidrone PAT members from
$800 to $875. - reducing the number of camera/drone models being assembled.
- boosting the minimum number of cameras/drones that camera/drone PATs are
expected to assemble each week — such failure to achieve the weekly quota in as
many as 4 weeks a year constitutes automatic disqualification for year-end perfect
attendance bonuses. - increasing total annual compensation per camera/drone PAT member by a minimum of 2%
and a maximum of 5% annually. - increasing annual expenditures to train camera/drone PATsin best practice assembly
methods and ways to improve productivity from S2.000 per PAT to $2,250 per PAT
- The website prices virtually all companies in the industry charge Asia-Pacific buyers for
UAV drones are likely to be higher than the website prices they charge UAV drone buyers
in North America
- because the administrative costs per drone sold that companies incur on sales to buyers in the
Asia-Pacific region are over $10 higher than those incurred on sales to buyers in North America. - because unfavorable exchange rate adjustments are consistently $10 to $30 higher on sales to
buyers in the Asia-Pacific region than for buyers in North America. - because the corporate profits taxes that all companies have to pay to governments in the AsiaPacific region are 35% higher on average than the corporate profits companies have to pay
governments in North America. - when the import duties on shipments of UAV drones to buyers in the Asia-Pacific
region are significantly bigger than the import duties on shipments of UAV drones to
buyers in North America. - because the production/assembly costs per drone that companies incur on UAV dronesshipped
to the Asia-Pacific region are many dollars higher than production/assembly costs per drone
shipped to North America.
- After each decision round, company managers should make a point of examining the
information on p. 2 of the Company Operating Report that concerns the company’s
profitability in the action camera segment in each geographic region because
- total operating profits and operating profit margins are very likely to be lower in some
regions than others and because management needs to take actions to boost its
profitability in the underperforming regions in the upcoming decision round. - this report provides the company’s management team with convincing documentation of the