1. BUS 475 All Assignments (New Syllabus)
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BUS 475 Assignment Week 1 Mission, Vision, and You (New Syllabus)
(Under Armour) BUS 475 Assignment Week 2 Apply Internal and
External Environmental Analysis (Hoosier Media Inc) BUS 475
Assignment Week 3 Apply Balanced Scorecard Template (New
Syllabus) BUS 475 Assignment Week 4 Apply Implementation and
Communication Plan Case Study (Hoosier Media Inc) BUS 475
Assignment Week 5 Apply Strategic Plan Evaluation (Hoosier Media
Inc)
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BUS 475 Assignment Week 1 Mission, Vision, and You (New
Syllabus) (Under Armour)
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Select a company and identify its mission, vision, and values. Address
the following in 525 to 700 words: • Evaluate whether the company's
actions seem to align with their vision and mission statements. •
2. Examine how the mission and vision of the organization might
affect or guide employees in the company. • Describe the company's
culture based on your analysis. Click the Assignment Files tab to submit
your assignment.
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BUS 475 Assignment Week 1 Mission, Vision, and You (New
Syllabus) (Walmart)
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Select a company and identify its mission, vision, and values. Address
the following in 525 to 700 words: • Evaluate whether the company's
actions seem to align with their vision and mission statements. •
Examine how the mission and vision of the organization might
affect or guide employees in the company. • Describe the company's
culture based on your analysis. Click the Assignment Files tab to submit
your assignment.
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BUS 475 Assignment Week 2 Apply Internal and External
Environmental Analysis (Hoosier Media Inc) (2 Papers)
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You work for a consulting firm whose primary objective is to help
businesses improve their strategic operations. Your firm recently was
hired by a newspaper company named Hoosier Media Inc. The client's
print newspaper circulation and subscriptions have declined, resulting in
30% lower revenues over the last five years. Online ad revenues have
increased but currently account for just 5% of the company's revenue.
You have been tasked with providing a comprehensive internal and
external analysis to help the firm improve its business operations. Create
a 700- to 1,050-word analysis that includes the following: • Identify
economic, legal, and regulatory forces and trends. • Critique how
well the organization adapts to change. • Discuss the primary internal
organizational considerations. • Discuss the primary external
organization considerations. • Identify the major issues and/or
opportunities the company faces based on your analysis. Click the
Assignment Files tab to submit your assignment.
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BUS 475 Assignment Week 3 Apply Balanced Scorecard
Template (New Syllabus) (2 Papers)
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4. Develop three strategic objectives for each of the four balanced
scorecard areas using the Balanced Scorecard Template. Click the
Assignment Files tab to submit your assignment. Balanced Scorecard
Template Background Strategic objectives are measure of attaining your
vision and mission. They reflect the vision, mission, and values of the
business as well as the outcomes of the internal and external
environmental analysis. Scorecard Areas Develop at least three strategic
objectives for each of the four balanced scorecard areas. Financial
Objectives Measures Targets Customers Objectives Measures
Targets Internal Business Process ObjectivesMeasures Targets
Learning and Growth Objectives Measures Targets Reflection
Assess, in no more than 350 words, trends, assumptions, and risks of
Hoosier Media, Inc.‘s business model after completing the strategic
objectives for each area.
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BUS 475 Assignment Week 4 Apply Implementation and
Communication Plan Case Study (Hoosier Media Inc) (2 Papers)
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Consider the following information relative to your consulting
engagement for Hoosier Media, Inc. Marketing Currently Hoosier Media
utilizes traditional media vehicles for marketing. This includes print
advertising to solicit new and renewal newspaper subscriptions. Other
marketing tactics currently used include regional television and radio
advertising spots. Management has expressed interest in expanding its
5. marketing reach through social media and mobile app technology but is
unsure how to move forward in those areas. Information technology
Hoosier Media's newsroom is in dire need of technological updates. All
workstations currently have desktop computers; however, many
employees have been requesting the ability to work from home as well
as have access to company networks while on the road for business.
Many of the younger employees would like to have access to iPads and
would like to replace their desktop computer with lightweight laptop
computers. For the next phase of your consulting engagement, address
the following in a 700- to 1,050-word paper: • Propose marketing
and information technology implementation tactics for Hoosier Media,
Inc. The paper should also reflect on how the company should
communicate its strategic plan to key stakeholders by: • Identifying the
information that should be communicated. • Defining the audience that
should receive the communication. • Identifying the channel(s) of
communication. Click the Assignment Files tab to submit your
assignment.
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BUS 475 Assignment Week 5 Apply Strategic Plan Evaluation
(Hoosier Media Inc) (2 PPT)
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Refer back to the Week 2 company, Hoosier Media, Inc. Your
consulting firm is now ready to present suggestions regarding the
strategic plan of Hoosier Media, Inc. In a 10- to 20-slide presentation
6. with speaker notes, address the following which will be presented to the
Director of Marketing: • The best possible options for evaluating a
strategic plan • Corrective actions that should be taken to ensure
company operations are correctly aligned with the strategic plan Include
the following in your presentation: • How should the company
measure organizational performance? •How will the company examine
what progress is being made toward the stated objectives? • What
criteria will be used when determining whether company objectives are
measurable and verifiable? • Based on your knowledge of the
company, what changes should be made to reposition Hoosier Media
competitively for the future? Click the Assignment Files tab to submit
your assignment.
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BUS 475 Capstone Final Exam Part 1 and 2 (New, 2018)
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BUS 475 Capstone Final Examination Part 1 (New, 2017) BUS 475
Capstone Final Examination Part 2 (New, 2017)
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BUS 475 Capstone Final Exam Part 1 and 2 (New, 2019)
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BUS 475 Capstone Final Examination Part 1 (New, 2017) BUS 475
Capstone Final Examination Part 2 (New, 2017)
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BUS 475 Capstone Final Examination Part 1 (New, 2018)
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BUS 475 Capstone Final Examination Part 1 From the following
information calculate the net increase in cash. • $88,780 • $18,620 •
$13,220 • $23,380 Irvin‘s Ice Creams a popular chain of ice
cream parlors located only in the United States is looking for
opportunities to grow its business. Which of the following suggestions,
if provided by the company‘s marketing manager, would present the
least amount of risk to the firm? •Leveraging the firm‘s brand value by
selling children‘s toys • Increasing sales by increasing the number of
stores in the United States • Selling Irvin‘s branded clothing in a new
market • Selling its current products in an attractive new market
Claudia is a team lead in an organization. One day at work a team
member Marc informs Claudia that he wants to speak to her about the
problems that he faces at work. Marc tells her that he is being treated
unfairly at work and that his colleagues often ridicule him because of his
8. ethnicity. He goes on to say that his disturbed state of mind has caused a
dip in the productivity and quality of his work. Claudia does not
interrupt him when he is speaking and encourages him to talk openly.
She also lets him know that she understands his situation and that his
feelings are valid. In this scenario, Claudia is primarily engaged in
__________. • selective listening • passive listening • empathic
listening • defensive listening Calculate the net working capital from the
information given below. The figures are in millions of dollars. •
$(140) • $520 • $610 • $1,030 TwissData Corp. is an
electronics firm based in Damiya that manufactures motherboards.
Because of a rapid growth in the personal computing industry,
TwissData Corp. decides to produce personal desktops and laptops
instead of motherboards. By doing so, which type of market-product
strategy has TwissData Corp. applied? • Product development •
Diversification • Market penetration • Market development
Zuckain Corp. has issued a 10-year coupon bond. The bond is issued at
an annual coupon rate of 14%. The face value of the bond is $1,500, and
the bond is currently trading at $1,232.56. Calculate the bond‘s yield to
maturity. • 64% • 32% • 25% • 95% The current price of
Latera Corporation‘s common stock is $45 per share. The company
expects to pay a dividend of $3.30 per share during the next year. The
expected growth rate of the stock is 12%. Calculate the cost of equity
using the constant-growth model. • 33% • 60% • 64% •
33% General Pharmacy‘s stock has a beta of 1.8 and an expected
return of 14%, and Sicoras Corp.‘s stock has a beta of 1.5 and an
expected return of 16.2%. Assuming capital-asset pricing model holds,
calculate the return on the market portfolio. • 3% • 2% • 6% • 9%
In 2006, Dexel Electronics Inc. introduced audio systems in the market
for electronic gadgets. Because of an increase in sales volume as well as
a growing proportion of repeat purchasers, the company has now
upgraded the old version of audio systems by introducing new features.
Given this information, in which stage of the product life cycle does
Dexel Electronics lie? • Growth • Decline • Introduction •
Maturity FarmFresh Inc. partners with multiple retailers to sell its
organic products. If stocks fall below a product‘s threshold, the retail
9. managers raise purchase orders to FarmFresh. It takes two days for
FarmFresh to process the orders and dispatch the products. The process
proves to be ineffective when the retail stores do not have the stock to
meet a sudden increase in demand. How can supply chain management
(SCM) systems solve this problem and make the process more efficient?
• The retail stores can track the status of a shipment. • Managers
from the retail stores can raise purchase orders over telephone. •
FarmFresh can have real-time access to sales information. •
Customers can track the status of a product delivery. LaBelle, a
famous cosmetic brand, introduces a new skin cleanser. Initially, the
product does extremely well and reaps huge profits for the company.
After using the product for few months, consumers having acne
complain of rashes and allergies. An external chemical agency accuses
that the company used a harsh chemical that causes allergies to people
with acne, and it did not include it on the ingredients list displayed on
the product‘s label. These harsh chemicals did not cause allergies to
people with normal skin. When enquired, the company‘s CEO confesses
that the products would have not done so well if they had listed the
chemical. The company can be charged with __________. • battery •
fraud • defamation • Assault Ricalta Inc. earns a total of
$500,000 before interest and taxes. Its total debt is $1,110,000 (costing
5%). It has 150,000 shares of common stock at $5 per share. The firm is
considering reducing its debt by $450,000 by issuing an additional
90,000 shares of common stock. The firm is in the 35 percent tax
bracket. Its earnings before interest and taxes will remain the same as the
new capital structure will not impact the firm‘s operations. Which of the
following will be a consequence of the change in Ricalta‘s capital
structure? • The firm‘s earnings before taxes (EBT) will remain
unchanged. • The firm‘s net income will decrease by $14,625. • The
firm‘s earnings per share (EPS) will be reduced by $0.66. • The firm‘s
net income will increase by $10,625. The capital structure of Wilken
Corporation is given below. Calculate the weighted average cost of
capital (WACC). Additional details are as follows: • 35% • 65%
• 75% • 45% Mirabel Inc. has recently ventured into the home
cleaning supplies market with its very own floor cleaner, Flofix, which
10. does not contain any harmful chemicals such as phenol. The company
has used aggressive marketing strategies and innovative advertising
campaigns to promote the product. The company‘s revenue analysis
shows that the sales for the product are increasing steadily. However,
when the market survey team of the company surveyed a large number
of consumers in the target market, the consumers mentioned that they
had not switched over to the new brand of floor cleaner. Which of the
following, if true, best explains how the sales for the company went up
in spite of consumers not purchasing the product? • People prefer to
use products that they are familiar with rather than trying out new
products. • Organizational buyers purchase new products before
consumers do. • Consumers sometimes wait to see how well a product
performs in the market before purchasing it. • Mirabel Inc. did not
invest equal amounts of money on its different advertising campaigns. A
popular hypermarket chain came under criticism for failing to protect the
e-mail addresses and credit card details of 50,000 customers. CloudCom
Inc., a web services company, identified that the lapse was because of a
worm that had breached the hypermarket‘s internal servers through an
unauthorized e-mail, and that the anti-malware system failed to catch the
worm. Which of the following actions should CloudCom take to restrict
such malwares from entering the hypermarket‘s internal network? •
Install a firewall • Use a virtual private network to connect its
users • Whitelist the malware • Update the anti-malware
system‘s database Robert, an ardent blogger, is approached by the
marketing manager of LaBelle, a famous cosmetic brand, to write
positive reviews about the company‘s products. Robert knows that the
company‘s products cause allergic reactions and to write positive
reviews about the products would be unethical. Which of the following
decisions will be considered an ethical lapse? • To write positive
reviews about the product • To turn down the company‘s offer • To
write a review after testing the product • To inform people about the
products‘ allergic reactions After a series of thefts in an organization, the
management is considering whether or not to install cameras inside the
office. The management is torn between violating the privacy of
employees and preventing future thefts from taking place. This scenario
11. illustrates an __________. •ethical dilemma • ethical lapse •
absence of codes of professionalism • absence of codes of ethics
Kwalkon Computing released a new software update for their calendar
app. The update synchronizes both personal and business calendars
seamlessly. The update has all the relevant bug fixes and promises to
make the app work faster. Since there have been no recent complaints
about the software, the update must have solved all the customers‘
issues. Which of the following questions would be most relevant in
evaluating the argument? • Has enough time passed after the release of
the update? • What is the memory required in order to install the
update? • What is the pace at which the updated app will perform its
functions? • Has Kwalkon released any updates for their other
software applications? Hailey‘s Food Inc. sells fish sticks at $3.00 a box.
The government passes a law requiring sellers of food products to pay
$0.50 as tax for each product they sell. Hailey‘s has to pay the
government $0.50 for every box of fish sticks it sells. The company
decides to trade down to compensate for the tax. Which of the following
is a likely outcome of the company‘s decision? • The company will
increase the price of one box of fish sticks to $3.50 while also increasing
the package size. • The company will sell fish sticks worth $2.50 at
$3.00 per box. • The company will increase the price and quantity of
fish sticks. • The company will continue to sell the same quantity of
fish sticks at the same price. Michael deposits $35,000 today in his bank
account. Calculate the approximate amount he will have at the end of six
years if interest is 10% per year and is compounded semiannually.
$115,560 $70,060 $50,180 $62,860 Irvin‘s Ice Creams, a popular chain
of ice cream parlors present only in the United States, is looking for
opportunities to grow its business. If the firm conducts a SWOT analysis
of its performance, which of the following would be categorized as a
threat? • The growing demand for ice creams in international markets
• The entry of international ice cream brands in the U.S. market •
The firm‘s inability to scale up in terms of revenue • The firm‘s
positive brand value among customers The intensive 45-day training
program for new employees at Zed Inc. requires trainees to take several
tests that trainers at Zed Inc. have to grade. Recently, there has been a
12. 30% increase in hiring. With the present number of trainers, it is not
possible to finish grading all the tests in time. HR manager: The training
team should transfer all the tests for the trainees to software that will
grade them automatically. Our hiring budget will not allow the hiring of
additional people to manage the increased number of trainees. Using
auto-grading software will not require any funds from our hiring budget.
Which of the following is assumed by the HR manager? • Using auto-
grading software will allow Zed Inc. to support all of its potential
training needs in the future. • Trainees will need a shorter duration
of time to answer the tests after the auto-grading software is
implemented. • Zed Inc. will not need to hire additional people to
operate the auto-grading software. • The duration of the training
cannot be reduced without negatively affecting the quality of the
training. Hush Sports Inc., sellers of sportswear, transitioned from being
just a brick-and-mortar store to an online marketplace for sports goods.
Hush Sports still relied on customers to call the store for feedbacks or
complaints. To speed up the process, the company updated its Web site
with options for the customers to review the products they purchased.
Positive reviews attracted more customers, and negative reviews helped
the company improve its products. Which of the following strategies has
Hush Sports included in its business process? • Crowdsourcing •
Cooperative advertising • Blogging • Conversational marketing
A shift in the demand curve for pretzels increases the price of pretzels
from $1.25 to $1.75 and its quantity demanded from 30 million to 35
million. The price elasticity of demand for pretzels is _____. 5 million
pretzels per dollar 2.32 $1.50 per pretzel 0.46 Dupon Inc. is a leading
manufacturer of handheld game consoles. Each console manufactured by
the firm has a different game. Although the video game industry faced a
sharp decline in demand with the introduction of mobile games, Dupon
still holds a significant market share for handheld games compared to its
competitors. To hold the market share, Dupon provides discounts to
customers purchasing more than one console. Which of the following
stages of the product life cycle is Dupon‘s products going through? •
The decline stage • The growth stage • The maturity stage •
The introduction stage LaBelle, a famous cosmetic brand,
13. introduces a new skin cleanser. The company pays bloggers to write
positive reviews about the product. The consumers who follow these
blogs assume that the bloggers are sharing their personal experiences
and decide to try the product. They are unaware that the blogs are part of
a marketing campaign. After a few days of using the product, they
complain of rashes and allergies. The bloggers can be charged with
__________. • assault • negligence • battery • Defamation
Mark is expected to receive $950 at the end of two years. Calculate the
present value of this amount if the discount rate is 6%. •$1690.99 •
$896.23 • $845.50 • $1792.45 Marketers at Cream & Fresh Ice
Creams update the company‘s web site and online journals regularly
with information about new ice creams. Readers who are interested in
the articles updated on the company‘s web site and online journals share
the links with their friends who further share it with more people. Some
readers try the ice creams and add their own comments to the web site
and online journals. Which of the following strategies is the company
using to promote its products? • Telemarketing • Wholesaling •
Stealth marketing • Blogging Managers at Hush Sports Inc.,
leading manufacturers of sports apparel, are contemplating
manufacturing high-end maple baseball bats. To understand the existing
demand for the product, the marketing managers decide to set an online
campaign, promoting the product through blogs, videos, and interactive
forums. Which of the following approaches should the company adapt in
its campaign? • Posting messages that the company would not prefer to
convey to an audience face-to-face • Replying to the consumer queries
about the advantages of using high-end maple baseball bats • Restricting
the consumers from posting comments on the company‘s Web site •
Withholding information that would cause potential concern over
the product‘s quality Sophie owns SugarCream bakery that produces 20
pastries in a day. The price of one pastry is $12. If she hires another
worker, she will be able to produce 24 pastries in a day. Assuming that
she operates in a competitive market and aims to maximize her profits,
she decides not to hire the additional worker. Which of the following
explains why Sophie did not hire the additional worker? • The cost of
hiring the additional worker was greater than the value of producing
14. additional pastries. • The cost of hiring the additional worker was less
than the average product of the additional worker. • The cost of
hiring the additional worker was less than the marginal product of the
additional worker. • The opportunity cost of hiring the additional
worker was zero. Rikan Inc.‘s credit sales for the year 2016 are
$5,000,000, and its gross profit is $1,500,000. The company‘s average
inventories are $595,000. Its average accounts receivable is $750,000
and average accounts payable is $640,000. From this information,
calculate the company‘s cash cycle. (Round the answer to one decimal.)
50.1 days 199.5 days 36.8 days 183.5 days Sam‘s stores, a popular retail
store, uses barcode scanners to scan each product that it sells. The data
generated from the scanners are saved in a database. The database is
updated every time a product is scanned and sold. This computer-based
information system helps managers access and analyze sales data.
Which of the following systems is the store using for its business?
Transaction processing system Supply chain management system Expert
system Electronic commerce system Colneith Corp. is a pharmaceutical
firm that mainly produces drugs for Alzheimer‘s disease. The Medical
Association of Zachary Islands conducted a study on the effectiveness of
the firm‘s drugs and found that multiple dosages of drugs were fatal.
This discovery would most likely lead to: • short-run profits for the
firm. • a decline in the production of the drug. • an increase the
production of the drug. • the exit of the firm from the market. Dupon
Inc., a leading manufacturer of handheld game consoles, decides to enter
the global marketplace. It decides to sell its products directly in a foreign
country. The foreign government denies permission to the company on
the grounds of protecting domestic manufacturers. However, the
government is willing to change its decision if the company contributes
to local employment. Which of the following strategies of entering the
foreign market will present the least risk to the company while also
meeting the government‘s condition? • Direct exporting • Joint
venture • Direct investment • Contract assembly Which of the
following alternatives will give the lowest present value? • Receiving
$650 at the end of three years at an interest rate of 10% compounded
annually • Receiving $500 at the end of three years at an interest rate of
15. 11% compounded annually • Receiving $450 at the end of two years
at an interest rate of 9% compounded annually • Receiving $550 at the
end of two years at an interest rate of 8% compounded annually Tony
holds 350 shares of a company‘s stock. At the end of 2015, the market
price of each share was $32. During the year 2016, the company pays
$2.25 in dividends per share. At the end of 2016, the company‘s stock is
priced at $39.50. Calculate the percentage return for holding the
company‘s stock during the year 2016. (Round the answer to one
decimal place.) • 8% •5% • 6% • 4% Rodriquez works as a scriptwriter
in an advertising agency. He has been assigned the task of developing a
script for a television commercial. He prepares a rough draft of the script
and submits it to his manager, Carl. Carl reads the script but derives a
different meaning from it than what Rodriquez intended. According to
the basic communication model, which of the following will be the next
step? • Carl will refuse to provide feedback to Rodriquez. • Carl
will respond with his interpretation of the script. • Rodriquez will be
asked to narrate his script to an audience. • Rodriquez will choose a
communication channel to transmit his message. The owners of
Brizzels‘ Food Truck send live notifications to their customers when
their truck is close to the customers‘ locations. Their strategy was in
response to a customer‘s blog post about having to wait for long hours
till the truck arrives. Which of the following strategies does this scenario
illustrate? • Social commerce • Social intelligence • Social
publishing • Social analytics Managing Director: Our business has
expanded over the past couple of years. The profit margin and revenue
earned have both gone up. On careful analysis of our client base, we
have found that all of our clients belong to the same culture as us. They
also hold ethical values that are similar to ours. Based on this finding, it
would be best if our company stops training our employees on cultural
sensitivity and instead gives our employees specialized training in
market research analysis. The Managing Director‘s argument is flawed
because it: • disregards the influence that a training on cultural
sensitivity could have on the company‘s profit margin. •fails to consider
that the suppliers for the company might belong to a different culture
than the clients. • takes for granted the continued increase in
16. revenue that the company will experience. • assumes that training in
market research analysis is less expensive than training in cultural
sensitivity. Calculate the cost of preferred stock from the information
given below: • 73% • 27% • 45% • 98% When Ronike
Ltd. decided to change its logo, it encouraged its employees to get
involved in the decision-making process. Employees were asked to
engage in brainstorming sessions by forming groups and working
together in teams. Which of the following is a likely outcome of their
teamwork? • Increased diversity of views among team members will
help improve decision making. • The dangers of groupthink will be
reduced. • Team members are less likely to support the final decision
regarding the change in logo. • Team members who have hidden
agendas will be automatically filtered and removed. Harry is receiving a
loan of $3,000 from his friend to pay off some outstanding bills. The
loan is structured in such a manner that the interest rate is 6% for the
first year, after which the interest rate increases by 2% per year until the
loan is paid. Calculate the amount that Harry will have to pay his friend
if he waits for a period of four years to pay off the loan. (Round the
answer to one decimal place.) • $4,231.20 • $4,005.50 • $3,777.80
• $2,127.10 Five years ago, Rigatani Corp. introduced its new
energy drink, Energize. According to recent market surveys, the product
is in its decline stage. At the same time Energize was introduced, Panne
Inc. introduced White Unicorn, another new energy drink. Therefore,
White Unicorn must also be in its decline stage now. Which of the
following is an assumption on which the conclusion is based? •
Market surveys are not a reliable method to determine the stages in
a product‘s life cycle. • Consumers have realized that the presence
of caffeine in energy drinks is detrimental to their health. • Both
products were not well received in the market. • White Unicorn did
not spend more time in the maturity stage than Energize did. Rosa Maria
attends an interview for a sales manager position at Pixxels Inc. As part
of the interview process, she is asked to reveal personal information. The
company gets Rosa‘s consent to share the information with a security
company for background verification. Which of the following actions, if
taken by the security company, will be unethical? • Contacting
17. Rosa‘s previous employer for verification • Selling Rosa‘s personal
information to a third party • Requesting for additional information •
Providing Pixxels Inc. reports on Rosa‘s online behavior The
government of Seronia is deeply concerned about the rate of obesity in
the country. It has framed a policy that requires food and beverage
manufacturers to be taxed according to the sugar and fat content in their
products. This will make high-sugar and high-fat products more
expensive for consumers. The government believes that this policy will
surely benefit the health of Seronian citizens. Which of the following
statements, if true, would undermine the government‘s argument? •The
policy is not applicable to food products that are not manufactured
within Seronia. •Recent campaigns done by nutritionists have increased
consumer awareness about the adverse effects of a high-calorie diet. •
The Seronian government‘s expenditure on providing health care
to its citizens has steadily increased over the last ten years. • Consumers
tend to decrease the consumption of some healthy food products to
afford the prices of high-sugar and high-fat products, which are tastier.
Marketing head of Tosel Inc.: Our company has been using an advanced
CRM platform, Inito, which is popular among businesses for its
sophisticated functionality. Inito allows us to store customers‘
psychographic data as well as their recent shopping behavior. However,
since we began using Inito, we have not been able to generate a
significant greater number of leads. Clearly then, using CRM software
does not help in generating any business. Which of the following
statements, if true, would weaken the argument above? • It is
difficult to create a successful marketing strategy for a customer base
that greatly varies in demographic and psychographic factors. • Inito
is the most commonly used CRM platform. •Tosel has integrated Inito
into the other information systems used by the company. • Tosel has not
invested the resources required to maintain its database of customers‘
psychographic data and shopping behavior. Cream & Fresh Ice Creams
pays bloggers to write positive reviews about its ice creams. Readers
who are interested in the product read these reviews and share the link
with their friends who further share the reviews with more people. Some
readers try the ice creams and add their own comments to the blog.
18. Which of the following strategies is the company using to promote its
products? •Stealth marketing • Wholesaling • Online word-of-
mouth marketing • Telemarketing In 2005, Susana purchased a 7-
year zero coupon bond for $967.23. The face value of the bond was
$1,200. Calculate the capital gain on this bond in 2006. • $42.56 •
$30.75 • $78.56 • $23.56 Truno Corp. plans to purchase new
project management software. There are three available choices in the
market: Telpro, Morse, and Verla. Systems manager: I have compared
the three available choices. All three choices are similar in quality,
features, and usability. However, Morse is the most commonly used
software, and it also has the lowest purchase price. Therefore, the best
choice of project management software for us would be Morse. Which
of the following statements, if true, would strengthen the systems
manager‘s argument? • Morse is easily customized to fit individual
customer needs. • Employees at Truno Corp. do not support the idea
of using project management software. • The project management
requirements of other users of Morse are not similar to those of Truno
Corp. • The prices of Verla and Telpro have fluctuated considerably over
the past 5 years. MaxSale, a popular supermarket, is approached by
Hartane‘s, an organic food producer, to sell its products through the
supermarket‘s stores. MaxSale demands a substantial amount of money
to display these products for a minimum duration. MaxSale uses this
strategy to charge premium amounts to a select few producers as a
means to reduce competition. By doing so, which of the following
consumer rights is MaxSale violating? • The right to be informed •
The right to be heard •The right to choose • The right to safety
==============================================
BUS 475 Capstone Final Examination Part 1 (New, 2019)
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BUS 475 Capstone Final Examination Part 1 From the following
information calculate the net increase in cash. • $88,780 • $18,620 •
$13,220 • $23,380 Irvin‘s Ice Creams a popular chain of ice
cream parlors located only in the United States is looking for
opportunities to grow its business. Which of the following suggestions,
if provided by the company‘s marketing manager, would present the
least amount of risk to the firm? •Leveraging the firm‘s brand value by
selling children‘s toys • Increasing sales by increasing the number of
stores in the United States • Selling Irvin‘s branded clothing in a new
market • Selling its current products in an attractive new market
Claudia is a team lead in an organization. One day at work a team
member Marc informs Claudia that he wants to speak to her about the
problems that he faces at work. Marc tells her that he is being treated
unfairly at work and that his colleagues often ridicule him because of his
ethnicity. He goes on to say that his disturbed state of mind has caused a
dip in the productivity and quality of his work. Claudia does not
interrupt him when he is speaking and encourages him to talk openly.
She also lets him know that she understands his situation and that his
feelings are valid. In this scenario, Claudia is primarily engaged in
__________. • selective listening • passive listening • empathic
listening • defensive listening Calculate the net working capital from the
information given below. The figures are in millions of dollars. •
$(140) • $520 • $610 • $1,030 TwissData Corp. is an
electronics firm based in Damiya that manufactures motherboards.
Because of a rapid growth in the personal computing industry,
TwissData Corp. decides to produce personal desktops and laptops
instead of motherboards. By doing so, which type of market-product
strategy has TwissData Corp. applied? • Product development •
Diversification • Market penetration • Market development
20. Zuckain Corp. has issued a 10-year coupon bond. The bond is issued at
an annual coupon rate of 14%. The face value of the bond is $1,500, and
the bond is currently trading at $1,232.56. Calculate the bond‘s yield to
maturity. • 64% • 32% • 25% • 95% The current price of
Latera Corporation‘s common stock is $45 per share. The company
expects to pay a dividend of $3.30 per share during the next year. The
expected growth rate of the stock is 12%. Calculate the cost of equity
using the constant-growth model. • 33% • 60% • 64% •
33% General Pharmacy‘s stock has a beta of 1.8 and an expected
return of 14%, and Sicoras Corp.‘s stock has a beta of 1.5 and an
expected return of 16.2%. Assuming capital-asset pricing model holds,
calculate the return on the market portfolio. • 3% • 2% • 6% • 9%
In 2006, Dexel Electronics Inc. introduced audio systems in the market
for electronic gadgets. Because of an increase in sales volume as well as
a growing proportion of repeat purchasers, the company has now
upgraded the old version of audio systems by introducing new features.
Given this information, in which stage of the product life cycle does
Dexel Electronics lie? • Growth • Decline • Introduction •
Maturity FarmFresh Inc. partners with multiple retailers to sell its
organic products. If stocks fall below a product‘s threshold, the retail
managers raise purchase orders to FarmFresh. It takes two days for
FarmFresh to process the orders and dispatch the products. The process
proves to be ineffective when the retail stores do not have the stock to
meet a sudden increase in demand. How can supply chain management
(SCM) systems solve this problem and make the process more efficient?
• The retail stores can track the status of a shipment. • Managers
from the retail stores can raise purchase orders over telephone. •
FarmFresh can have real-time access to sales information. •
Customers can track the status of a product delivery. LaBelle, a
famous cosmetic brand, introduces a new skin cleanser. Initially, the
product does extremely well and reaps huge profits for the company.
After using the product for few months, consumers having acne
complain of rashes and allergies. An external chemical agency accuses
that the company used a harsh chemical that causes allergies to people
with acne, and it did not include it on the ingredients list displayed on
21. the product‘s label. These harsh chemicals did not cause allergies to
people with normal skin. When enquired, the company‘s CEO confesses
that the products would have not done so well if they had listed the
chemical. The company can be charged with __________. • battery •
fraud • defamation • Assault Ricalta Inc. earns a total of
$500,000 before interest and taxes. Its total debt is $1,110,000 (costing
5%). It has 150,000 shares of common stock at $5 per share. The firm is
considering reducing its debt by $450,000 by issuing an additional
90,000 shares of common stock. The firm is in the 35 percent tax
bracket. Its earnings before interest and taxes will remain the same as the
new capital structure will not impact the firm‘s operations. Which of the
following will be a consequence of the change in Ricalta‘s capital
structure? • The firm‘s earnings before taxes (EBT) will remain
unchanged. • The firm‘s net income will decrease by $14,625. • The
firm‘s earnings per share (EPS) will be reduced by $0.66. • The firm‘s
net income will increase by $10,625. The capital structure of Wilken
Corporation is given below. Calculate the weighted average cost of
capital (WACC). Additional details are as follows: • 35% • 65%
• 75% • 45% Mirabel Inc. has recently ventured into the home
cleaning supplies market with its very own floor cleaner, Flofix, which
does not contain any harmful chemicals such as phenol. The company
has used aggressive marketing strategies and innovative advertising
campaigns to promote the product. The company‘s revenue analysis
shows that the sales for the product are increasing steadily. However,
when the market survey team of the company surveyed a large number
of consumers in the target market, the consumers mentioned that they
had not switched over to the new brand of floor cleaner. Which of the
following, if true, best explains how the sales for the company went up
in spite of consumers not purchasing the product? • People prefer to
use products that they are familiar with rather than trying out new
products. • Organizational buyers purchase new products before
consumers do. • Consumers sometimes wait to see how well a product
performs in the market before purchasing it. • Mirabel Inc. did not
invest equal amounts of money on its different advertising campaigns. A
popular hypermarket chain came under criticism for failing to protect the
22. e-mail addresses and credit card details of 50,000 customers. CloudCom
Inc., a web services company, identified that the lapse was because of a
worm that had breached the hypermarket‘s internal servers through an
unauthorized e-mail, and that the anti-malware system failed to catch the
worm. Which of the following actions should CloudCom take to restrict
such malwares from entering the hypermarket‘s internal network? •
Install a firewall • Use a virtual private network to connect its
users • Whitelist the malware • Update the anti-malware
system‘s database Robert, an ardent blogger, is approached by the
marketing manager of LaBelle, a famous cosmetic brand, to write
positive reviews about the company‘s products. Robert knows that the
company‘s products cause allergic reactions and to write positive
reviews about the products would be unethical. Which of the following
decisions will be considered an ethical lapse? • To write positive
reviews about the product • To turn down the company‘s offer • To
write a review after testing the product • To inform people about the
products‘ allergic reactions After a series of thefts in an organization, the
management is considering whether or not to install cameras inside the
office. The management is torn between violating the privacy of
employees and preventing future thefts from taking place. This scenario
illustrates an __________. •ethical dilemma • ethical lapse •
absence of codes of professionalism • absence of codes of ethics
Kwalkon Computing released a new software update for their calendar
app. The update synchronizes both personal and business calendars
seamlessly. The update has all the relevant bug fixes and promises to
make the app work faster. Since there have been no recent complaints
about the software, the update must have solved all the customers‘
issues. Which of the following questions would be most relevant in
evaluating the argument? • Has enough time passed after the release of
the update? • What is the memory required in order to install the
update? • What is the pace at which the updated app will perform its
functions? • Has Kwalkon released any updates for their other
software applications? Hailey‘s Food Inc. sells fish sticks at $3.00 a box.
The government passes a law requiring sellers of food products to pay
$0.50 as tax for each product they sell. Hailey‘s has to pay the
23. government $0.50 for every box of fish sticks it sells. The company
decides to trade down to compensate for the tax. Which of the following
is a likely outcome of the company‘s decision? • The company will
increase the price of one box of fish sticks to $3.50 while also increasing
the package size. • The company will sell fish sticks worth $2.50 at
$3.00 per box. • The company will increase the price and quantity of
fish sticks. • The company will continue to sell the same quantity of
fish sticks at the same price. Michael deposits $35,000 today in his bank
account. Calculate the approximate amount he will have at the end of six
years if interest is 10% per year and is compounded semiannually.
$115,560 $70,060 $50,180 $62,860 Irvin‘s Ice Creams, a popular chain
of ice cream parlors present only in the United States, is looking for
opportunities to grow its business. If the firm conducts a SWOT analysis
of its performance, which of the following would be categorized as a
threat? • The growing demand for ice creams in international markets
• The entry of international ice cream brands in the U.S. market •
The firm‘s inability to scale up in terms of revenue • The firm‘s
positive brand value among customers The intensive 45-day training
program for new employees at Zed Inc. requires trainees to take several
tests that trainers at Zed Inc. have to grade. Recently, there has been a
30% increase in hiring. With the present number of trainers, it is not
possible to finish grading all the tests in time. HR manager: The training
team should transfer all the tests for the trainees to software that will
grade them automatically. Our hiring budget will not allow the hiring of
additional people to manage the increased number of trainees. Using
auto-grading software will not require any funds from our hiring budget.
Which of the following is assumed by the HR manager? • Using auto-
grading software will allow Zed Inc. to support all of its potential
training needs in the future. • Trainees will need a shorter duration
of time to answer the tests after the auto-grading software is
implemented. • Zed Inc. will not need to hire additional people to
operate the auto-grading software. • The duration of the training
cannot be reduced without negatively affecting the quality of the
training. Hush Sports Inc., sellers of sportswear, transitioned from being
just a brick-and-mortar store to an online marketplace for sports goods.
24. Hush Sports still relied on customers to call the store for feedbacks or
complaints. To speed up the process, the company updated its Web site
with options for the customers to review the products they purchased.
Positive reviews attracted more customers, and negative reviews helped
the company improve its products. Which of the following strategies has
Hush Sports included in its business process? • Crowdsourcing •
Cooperative advertising • Blogging • Conversational marketing
A shift in the demand curve for pretzels increases the price of pretzels
from $1.25 to $1.75 and its quantity demanded from 30 million to 35
million. The price elasticity of demand for pretzels is _____. 5 million
pretzels per dollar 2.32 $1.50 per pretzel 0.46 Dupon Inc. is a leading
manufacturer of handheld game consoles. Each console manufactured by
the firm has a different game. Although the video game industry faced a
sharp decline in demand with the introduction of mobile games, Dupon
still holds a significant market share for handheld games compared to its
competitors. To hold the market share, Dupon provides discounts to
customers purchasing more than one console. Which of the following
stages of the product life cycle is Dupon‘s products going through? •
The decline stage • The growth stage • The maturity stage •
The introduction stage LaBelle, a famous cosmetic brand,
introduces a new skin cleanser. The company pays bloggers to write
positive reviews about the product. The consumers who follow these
blogs assume that the bloggers are sharing their personal experiences
and decide to try the product. They are unaware that the blogs are part of
a marketing campaign. After a few days of using the product, they
complain of rashes and allergies. The bloggers can be charged with
__________. • assault • negligence • battery • Defamation
Mark is expected to receive $950 at the end of two years. Calculate the
present value of this amount if the discount rate is 6%. •$1690.99 •
$896.23 • $845.50 • $1792.45 Marketers at Cream & Fresh Ice
Creams update the company‘s web site and online journals regularly
with information about new ice creams. Readers who are interested in
the articles updated on the company‘s web site and online journals share
the links with their friends who further share it with more people. Some
readers try the ice creams and add their own comments to the web site
25. and online journals. Which of the following strategies is the company
using to promote its products? • Telemarketing • Wholesaling •
Stealth marketing • Blogging Managers at Hush Sports Inc.,
leading manufacturers of sports apparel, are contemplating
manufacturing high-end maple baseball bats. To understand the existing
demand for the product, the marketing managers decide to set an online
campaign, promoting the product through blogs, videos, and interactive
forums. Which of the following approaches should the company adapt in
its campaign? • Posting messages that the company would not prefer to
convey to an audience face-to-face • Replying to the consumer queries
about the advantages of using high-end maple baseball bats • Restricting
the consumers from posting comments on the company‘s Web site •
Withholding information that would cause potential concern over
the product‘s quality Sophie owns SugarCream bakery that produces 20
pastries in a day. The price of one pastry is $12. If she hires another
worker, she will be able to produce 24 pastries in a day. Assuming that
she operates in a competitive market and aims to maximize her profits,
she decides not to hire the additional worker. Which of the following
explains why Sophie did not hire the additional worker? • The cost of
hiring the additional worker was greater than the value of producing
additional pastries. • The cost of hiring the additional worker was less
than the average product of the additional worker. • The cost of
hiring the additional worker was less than the marginal product of the
additional worker. • The opportunity cost of hiring the additional
worker was zero. Rikan Inc.‘s credit sales for the year 2016 are
$5,000,000, and its gross profit is $1,500,000. The company‘s average
inventories are $595,000. Its average accounts receivable is $750,000
and average accounts payable is $640,000. From this information,
calculate the company‘s cash cycle. (Round the answer to one decimal.)
50.1 days 199.5 days 36.8 days 183.5 days Sam‘s stores, a popular retail
store, uses barcode scanners to scan each product that it sells. The data
generated from the scanners are saved in a database. The database is
updated every time a product is scanned and sold. This computer-based
information system helps managers access and analyze sales data.
Which of the following systems is the store using for its business?
26. Transaction processing system Supply chain management system Expert
system Electronic commerce system Colneith Corp. is a pharmaceutical
firm that mainly produces drugs for Alzheimer‘s disease. The Medical
Association of Zachary Islands conducted a study on the effectiveness of
the firm‘s drugs and found that multiple dosages of drugs were fatal.
This discovery would most likely lead to: • short-run profits for the
firm. • a decline in the production of the drug. • an increase the
production of the drug. • the exit of the firm from the market. Dupon
Inc., a leading manufacturer of handheld game consoles, decides to enter
the global marketplace. It decides to sell its products directly in a foreign
country. The foreign government denies permission to the company on
the grounds of protecting domestic manufacturers. However, the
government is willing to change its decision if the company contributes
to local employment. Which of the following strategies of entering the
foreign market will present the least risk to the company while also
meeting the government‘s condition? • Direct exporting • Joint
venture • Direct investment • Contract assembly Which of the
following alternatives will give the lowest present value? • Receiving
$650 at the end of three years at an interest rate of 10% compounded
annually • Receiving $500 at the end of three years at an interest rate of
11% compounded annually • Receiving $450 at the end of two years
at an interest rate of 9% compounded annually • Receiving $550 at the
end of two years at an interest rate of 8% compounded annually Tony
holds 350 shares of a company‘s stock. At the end of 2015, the market
price of each share was $32. During the year 2016, the company pays
$2.25 in dividends per share. At the end of 2016, the company‘s stock is
priced at $39.50. Calculate the percentage return for holding the
company‘s stock during the year 2016. (Round the answer to one
decimal place.) • 8% •5% • 6% • 4% Rodriquez works as a scriptwriter
in an advertising agency. He has been assigned the task of developing a
script for a television commercial. He prepares a rough draft of the script
and submits it to his manager, Carl. Carl reads the script but derives a
different meaning from it than what Rodriquez intended. According to
the basic communication model, which of the following will be the next
step? • Carl will refuse to provide feedback to Rodriquez. • Carl
27. will respond with his interpretation of the script. • Rodriquez will be
asked to narrate his script to an audience. • Rodriquez will choose a
communication channel to transmit his message. The owners of
Brizzels‘ Food Truck send live notifications to their customers when
their truck is close to the customers‘ locations. Their strategy was in
response to a customer‘s blog post about having to wait for long hours
till the truck arrives. Which of the following strategies does this scenario
illustrate? • Social commerce • Social intelligence • Social
publishing • Social analytics Managing Director: Our business has
expanded over the past couple of years. The profit margin and revenue
earned have both gone up. On careful analysis of our client base, we
have found that all of our clients belong to the same culture as us. They
also hold ethical values that are similar to ours. Based on this finding, it
would be best if our company stops training our employees on cultural
sensitivity and instead gives our employees specialized training in
market research analysis. The Managing Director‘s argument is flawed
because it: • disregards the influence that a training on cultural
sensitivity could have on the company‘s profit margin. •fails to consider
that the suppliers for the company might belong to a different culture
than the clients. • takes for granted the continued increase in
revenue that the company will experience. • assumes that training in
market research analysis is less expensive than training in cultural
sensitivity. Calculate the cost of preferred stock from the information
given below: • 73% • 27% • 45% • 98% When Ronike
Ltd. decided to change its logo, it encouraged its employees to get
involved in the decision-making process. Employees were asked to
engage in brainstorming sessions by forming groups and working
together in teams. Which of the following is a likely outcome of their
teamwork? • Increased diversity of views among team members will
help improve decision making. • The dangers of groupthink will be
reduced. • Team members are less likely to support the final decision
regarding the change in logo. • Team members who have hidden
agendas will be automatically filtered and removed. Harry is receiving a
loan of $3,000 from his friend to pay off some outstanding bills. The
loan is structured in such a manner that the interest rate is 6% for the
28. first year, after which the interest rate increases by 2% per year until the
loan is paid. Calculate the amount that Harry will have to pay his friend
if he waits for a period of four years to pay off the loan. (Round the
answer to one decimal place.) • $4,231.20 • $4,005.50 • $3,777.80
• $2,127.10 Five years ago, Rigatani Corp. introduced its new
energy drink, Energize. According to recent market surveys, the product
is in its decline stage. At the same time Energize was introduced, Panne
Inc. introduced White Unicorn, another new energy drink. Therefore,
White Unicorn must also be in its decline stage now. Which of the
following is an assumption on which the conclusion is based? •
Market surveys are not a reliable method to determine the stages in
a product‘s life cycle. • Consumers have realized that the presence
of caffeine in energy drinks is detrimental to their health. • Both
products were not well received in the market. • White Unicorn did
not spend more time in the maturity stage than Energize did. Rosa Maria
attends an interview for a sales manager position at Pixxels Inc. As part
of the interview process, she is asked to reveal personal information. The
company gets Rosa‘s consent to share the information with a security
company for background verification. Which of the following actions, if
taken by the security company, will be unethical? • Contacting
Rosa‘s previous employer for verification • Selling Rosa‘s personal
information to a third party • Requesting for additional information •
Providing Pixxels Inc. reports on Rosa‘s online behavior The
government of Seronia is deeply concerned about the rate of obesity in
the country. It has framed a policy that requires food and beverage
manufacturers to be taxed according to the sugar and fat content in their
products. This will make high-sugar and high-fat products more
expensive for consumers. The government believes that this policy will
surely benefit the health of Seronian citizens. Which of the following
statements, if true, would undermine the government‘s argument? •The
policy is not applicable to food products that are not manufactured
within Seronia. •Recent campaigns done by nutritionists have increased
consumer awareness about the adverse effects of a high-calorie diet. •
The Seronian government‘s expenditure on providing health care
to its citizens has steadily increased over the last ten years. • Consumers
29. tend to decrease the consumption of some healthy food products to
afford the prices of high-sugar and high-fat products, which are tastier.
Marketing head of Tosel Inc.: Our company has been using an advanced
CRM platform, Inito, which is popular among businesses for its
sophisticated functionality. Inito allows us to store customers‘
psychographic data as well as their recent shopping behavior. However,
since we began using Inito, we have not been able to generate a
significant greater number of leads. Clearly then, using CRM software
does not help in generating any business. Which of the following
statements, if true, would weaken the argument above? • It is
difficult to create a successful marketing strategy for a customer base
that greatly varies in demographic and psychographic factors. • Inito
is the most commonly used CRM platform. •Tosel has integrated Inito
into the other information systems used by the company. • Tosel has not
invested the resources required to maintain its database of customers‘
psychographic data and shopping behavior. Cream & Fresh Ice Creams
pays bloggers to write positive reviews about its ice creams. Readers
who are interested in the product read these reviews and share the link
with their friends who further share the reviews with more people. Some
readers try the ice creams and add their own comments to the blog.
Which of the following strategies is the company using to promote its
products? •Stealth marketing • Wholesaling • Online word-of-
mouth marketing • Telemarketing In 2005, Susana purchased a 7-
year zero coupon bond for $967.23. The face value of the bond was
$1,200. Calculate the capital gain on this bond in 2006. • $42.56 •
$30.75 • $78.56 • $23.56 Truno Corp. plans to purchase new
project management software. There are three available choices in the
market: Telpro, Morse, and Verla. Systems manager: I have compared
the three available choices. All three choices are similar in quality,
features, and usability. However, Morse is the most commonly used
software, and it also has the lowest purchase price. Therefore, the best
choice of project management software for us would be Morse. Which
of the following statements, if true, would strengthen the systems
manager‘s argument? • Morse is easily customized to fit individual
customer needs. • Employees at Truno Corp. do not support the idea
30. of using project management software. • The project management
requirements of other users of Morse are not similar to those of Truno
Corp. • The prices of Verla and Telpro have fluctuated considerably over
the past 5 years. MaxSale, a popular supermarket, is approached by
Hartane‘s, an organic food producer, to sell its products through the
supermarket‘s stores. MaxSale demands a substantial amount of money
to display these products for a minimum duration. MaxSale uses this
strategy to charge premium amounts to a select few producers as a
means to reduce competition. By doing so, which of the following
consumer rights is MaxSale violating? • The right to be informed •
The right to be heard •The right to choose • The right to safety
==============================================
BUS 475 Capstone Final Examination Part 2 (New, 2018)
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BUS 475 Capstone Final Examination Part 2 A company declared a cash
dividend of $8560 on December 5 2015. The company made a cash
dividend payment on January 8, 2016. What is the cumulative effect of
the declaration and payment of the cash dividend on the company‘s
financial statements? Total liabilities will remain the same, and total
assets will increase by $8,560. Stockholders‘ equity and total assets will
decrease by $8,560. Stockholders‘ equity will increase by $8,560, and
total assets will remain the same. Total assets and liabilities will increase
by $8,560. Rilm Corporation has been recording investment income as
revenue for the past year with the aim of making the financial condition
31. of the company appear better than it actually is. Jon, one of the
company‘s employees, becomes aware of this fraudulent activity and
immediately reports it to the appropriate authorities. After conducting
several investigations, the authorities book the company under the
Sarbanes-Oxley Act. Which of the following statements best explains
why Jon did not hesitate to alert the authorities about the company‘s
fraudulent activity? Under the Sarbanes-Oxley Act, whistleblowers who
suffer retaliation are allowed to recover criminal damages but not civil
damages. The Sarbanes-Oxley Act requires accounting firms to separate
their auditing and consulting functions. There are no limitations to the
protections offered by the Sarbanes-Oxley Act to whistleblowers. The
Sarbanes-Oxley Act provides for the reinstatement of whistleblowers in
cases of improper termination. LaBelle a famous cosmetic brand
introduces a new skin cleanser. The product does extremely well and
reaps huge profits for the company. After using the product for a few
months, consumers complain of rashes and allergies. An external
chemical agency accuses the company of using banned substances in its
products. When investigated, the company‘s CEO confesses that he
knew about the substance but did not act because of the product‘s initial
success. Which of the following could be the cause for the CEO‘s
unethical behavior? The slippery slope Overvaluing outcomes Indirect
blindness Ill-conceived goals Elena Corporation owes Volmare Inc. an
advertising agency a sum of $42000 for services rendered. When Elena
Corporation goes public it offers the agency 7000 shares of its common
stock in exchange for the payable service cost. The agency accepts the
offer. The stock trades at $6 per share and the par value of the stock is
$1. Which of the following is the correct journal entry to record this
transaction in the books of Elena Corporation? CoolWindows Corp.
produces 2000 air conditioners per week in three plants: Plant I, Plant II,
and Plant III. Plant I produces 800 air conditioners per week, Plant II
produces 500 air conditioners per week, and Plant III produces 700 air
conditioners per week. The probability of an air conditioner being
defective is 7% for Plant I, 5% for Plant II, and 6% for Plant III,
respectively. In a random check, a defective air conditioner is found.
What is the probability that the air conditioner was produced in Plant II?
32. 25 18 20 75 Calculate the expected return for a stock based on the
following information. Expected dividend $2.20 Current price
$47.82 Expected growth rate 5.67% 6% 27% 87% 46% As a
common practice Rova Inc. mostly collects upfront payments for goods
that will be delivered to customers in the future. Unearned revenues
contribute significantly to the company‘s current liabilities.
Commentator A: The advance cash received from customers can be used
to finance the company‘s operations, and the corresponding liabilities
that are recorded will appear as sales in future financial statements.
Therefore, this practice is beneficial to Rova Inc. and should be
continued. Which of the following statements, if true, weakens
commentator A‘s argument? Rova Inc.‘s ability to deliver exactly as per
its commitments to its customers is frequently impacted by its unreliable
suppliers. Rova Inc.‘s long-term liabilities are not offset by its current
assets. Rova Inc.‘s cash flow statement shows that the company does not
have enough cash to scale up its operations in the next year. A majority
of the orders received by Rova Inc. from its customers are for
customized products. The senior management of Reska Corp. realizes
the importance of encouraging employees to be creative. In the previous
year, the company organized quarterly town hall meetings, where
employees were given the opportunity to share innovative ideas to tackle
the issues faced by the company and to improve the company‘s overall
performance. However, this plan did not yield the desired result. The
CEO of Reska Corp.: This plan failed because employees tended to be
apprehensive about expressing their ideas in public as they did not know
how the ideas would be received. We must change our strategy and give
employees the opportunity to express their ideas to their managers in
person. This will make the employees feel comfortable expressing their
creativity. Which of the following is assumed by the CEO? Unless the
employees of Reska share their creative ideas, the company‘s overall
performance is unlikely to improve. Employees feel less apprehensive
about expressing their ideas to their managers than about expressing
them in public. Reska‘s employees want to be creative at their jobs.
Companies with a creative workforce are less resistant to change than
those lacking creativity. Melanie and Peter are discussing the limitations
33. of internal control systems in organizations. Melanie believes that the
human element is an insignificant factor in internal control systems. If
Peter wants to refute this view, which of the following points should he
put forth? Small companies have more efficient internal control systems
as they do not need to segregate duties or provide for independent
internal verification. Collusion between two individuals can eliminate
the protection offered by segregation of duties in an internal control
system. A well-built internal control system has inbuilt controls to
reverse the results of employee indifference and carelessness. The size
of an organization determines the expectations from an internal control
system in the organization. Cryser Inc. specializes in manufacturing
wind turbines. In order to increase the efficiency of its manufacturing
process, the management decides to restructure its shop floor into
several workshops. Each workshop specializes in a specific function.
The engineers working in the company raise concerns that their jobs will
become monotonous if each employee performs only one of those
functions. Which of the following is a soft tactic that the management
can use to influence the engineers? Convincing the union leader to
persuade other engineers Explaining the benefits of the new structure
Demanding the engineers to comply with the authority Promising
monetary benefits Jeremia joins as the new marketing manager in a
leading multinational company. The company usually advertises its
products through newspapers, television, or trade fairs. Jeremia invites
different product managers within the company to discuss and find out
new ways of creating consumer awareness for the company‘s products.
Several members of the group are inclined toward Jeremia‘s idea of
using social media, while others are content with the present
promotional strategies. Which of the following stages of the group
development process are the managers experiencing? Performing
Forming Storming Norming Vonik Solvers Inc. receives $40,000 in cash
by issuing 15,000 shares of common stock at the par value of $2 per
share.Which of the following is the correct journal entry to record this
transaction? Cash 80,000 Common Stock 30,000 Additional Paid-in
Capital 50,000 Common Stock 40,000 Cash 30,000 Additional Paid-in
Capital 10,000 Cash 40,000 Common Stock 30,000 Additional Paid-in
34. Capital 10,000 Common Stock 80,000 Cash 30,000 Additional Paid-in
Capital 50,000 Cero Inc. is an oil and gas company that operates in the
nation of Lumnia. Cero has incurred unforeseen expenses this year
because of an environmental lawsuit filed against the company for
accidentally causing an oil spill in a marine area in Lumnia. Therefore,
despite Cero‘s earnings being high, the company‘s net income is much
lower than what the company anticipated. CFO of Cero Inc.: Our
operations are compliant to the current environmental laws. Accidents
such as the oil spill caused by Cero Inc. are extremely rare. Therefore,
the consequences of the environmental impacts of our operations should
be categorized as nonrecurring costs in our financial statements. Cero‘s
shareholder: Cero Inc.‘s earnings steadily increase every year. Since the
oil spill is a onetime incident, there is no need to worry about its impact
on next year‘s profits. Which of the following statements, if true,
weakens the CFO‘s argument? Cero Inc. categorizes any change in
accounting principles as a nonrecurring expense. A change in the taxes
applicable to Cero Inc. cannot be listed as a nonrecurring expense unless
it is unanticipated. In the future, Lumnia‘s environmental laws are likely
to undergo frequent changes because of increasing environmental
activism in Lumnia. Cero Inc.‘s earnings come from many other
operations that are based outside Lumnia. Telda Corp. is a large
accounting firm. It has an office in each of the 27 states of Kavenia. The
chairperson of Telda Corp.: I believe that if employees work in the same
office for a long time, issues like favoritism, complacency, and misuse
of authority are likely to develop. Therefore, I propose a policy that
requires at least the employees in managerial positions and above to be
transferred to a different office every five years. This policy will be well
received by our employees and discourage them from leaving our
company. Which of the following statements, if true, would most
seriously weaken the chairperson‘s policy? The cost of living in Kavenia
varies from state to state. Employees are more likely to switch jobs
within their city than to relocate to a new city for their current jobs. The
employees of Telda Corp. would have to be paid a relocation allowance
if they are transferred to a different city. There is a high rate of attrition
among Telda Corp.‘s employees who are not in managerial positions.
35. The HR manager of Delta Corp.: According to our rewards and
recognition program, employee achievements are acknowledged and
employees are given gift vouchers through emails on reaching
milestones and targets. I feel this is not enough to make employees feel
appreciated. In my previous company, work anniversaries and
professional achievements were celebrated in organization-wide
meetings, where the concerned employee would be publicly rewarded.
After all, I would love it if my efforts were recognized like this!
Therefore, such an idea would be a great success in our company. The
HR manager‘s argument is flawed because it: dismisses the possibility
of increasing the value of the gift vouchers that are given to the
employees at present. fails to prove that employees of Delta Corp. feel
unappreciated. fails to recognize the effort put in by his team to
implement the existing rewards and recognition program. fails to
consider that other people might perceive appreciation differently than
him. The management team at Cryser Inc., manufacturer of wind
turbines, aims to increase the company‘s market share by 20% by the
end of 2017. The respective functional heads in the company inform
their teams that they will get a substantial bonus if they are able to
achieve this target. Which of the following stages of the goal-setting
process is the company in? Providing support and feedback Creating
action plans Promoting goal commitment Setting goals calculate the
cash flows from investing activities based on the following information.
Cash received from customers $67,550 Cash paid to suppliers24,000
Purchase of equipment 230,000 Income tax paid 2,800 Payment
of dividends 115,000 Proceeds from sale of machinery 105,000 Interest
paid 1,500 Proceeds from issue of long-term debt 84,000 Purchase of
stocks 87,500 Receipts from sale of equity instruments 177,300
$(35,200) $39,250 $(31,000) $125,000 Raubac Inc. has an earnings
before interest and taxes (EBIT) of $350,000. Raubac Inc.‘s capital
structure consists of a long-term debt of $950,000 (costing 4%) and
110,000 issued shares of common stock at a market price of $6 per
share. To bring down Raubac‘s dependence on debt, the company is
planning to reduce its debt by $200,000 by selling additional shares of
common stock. Raubac‘s EBIT will not change with the change in
36. capital structure and will remain in the 40 percent tax bracket. Which of
the following is a result of the change in Raubac‘s capital structure?
Raubac‘s earnings before taxes (EBT) will remain unchanged. Raubac‘s
earnings per share (EPS) will increase by $0.57. Raubac‘s earnings
before taxes (EBT) will reduce by $8,000. Raubac‘s net income will
increase by $4,800. The management team at Cryser Electronics Inc.,
manufacturer of electrical generators, aims to increase the company‘s
market share by 20% by the end of 2017. To achieve this target, Marcus,
the marketing manager, assigns specific sales targets to individual
salespeople and retailers. In this scenario, the sales target is a(n)
__________. behavioral goal project goal task goal objective goal The
CEO of Wrenn Corporation is convicted of committing accounting
fraud. After several in-depth investigations, it is found that although the
CEO of the company was not aware of the fraud, he received 1.5 million
dollars in the form of bonuses and stock profits during the company‘s
fraudulent period. The Securities and Exchange Commission orders the
company to restate its financial position and furnish the correct financial
statements. As per the Sarbanes-Oxley Act, which of the following is a
likely consequence that will follow? The CEO will be held personally
liable for the company‘s misconduct during the fraudulent period. The
CEO will be asked to return the money that he or she received during the
company‘s fraudulent period. The company will be allowed to grant
personal loans to its executives provided that it can prove the
creditworthiness of the executives. The company will be asked to merge
its auditing and consulting functions. Calculate the cash flows from
financing activities based on the information given below. Depreciation
$ 770 Purchase of machinery 4,000 Increase in fixed asset
900 Payment of dividend 600 Issuance of short-term debt 1,500
Repayment of long-term debt 5,700 Increase in bank borrowings
6,200 $1,400 $630 $2,000 $4,130 Calculate the net income of
Tinekal Corporation from the following information. Depreciation
expense $ 850 Rent expense 500 Salaries expense 700 Supplies
expense 650 Interest expense 400 Revenue from sales 5,000
Profit from sale of assets 1,000 Dividend 700 $2,600 $3,600 $2,900
$1,900 Omega Corp. released the unaudited financial statement prepared
37. by its accountants. According to the statement, the profit margin of the
company has increased. The sales of its electronic appliances have also
increased. Based on the unaudited financial statement, buying Omega
Corp. shares would be a good investment. Which of the following, if
true, casts the most doubt on the conclusion? Omega Corp. does not
maintain more than a month‘s supply of inventory. The sales of other
products of Omega Corp. have not shown the increase that the sales of
electronic appliances have shown. The earnings reported in the audited
financial statement for Omega Corp. are lower than that reported in the
unaudited financial statement. The fixed expenses of the company have
increased significantly. BrightLife, a leading insurance company,
provides incentives to salespeople based on the number of prospective
customers they meet in a day. The salespeople, however, often spend
time with their friends and then claim to have met the prospective
customers. They are paid incentives based on their claims. The
company‘s CEO realizes that the number of customers the company has
is significantly less compared to the number of prospective customers
that the salespeople claim to have met. To rectify the unethical behavior
of the salespeople, the company now pays incentives based on the
number of sales each person makes. Which of the following could be a
cause for the salespeople‘s unethical behavior? Motivated blindness
Indirect blindness Ill-conceived goals Maertge Airlines purchases an
aircraft for $84,000,000 on January 1, 2016. The residual value of the
aircraft is estimated at $7,500,000, and its useful life is estimated at 25
years. Applying the double-declining-balance method of depreciation,
the depreciation expense recognized for the year ended December 31,
2018 will be __________. $6,182,400 $3,096,576 $5,687,808
$6,720,000 Luisana runs a clothing boutique that sells designer clothes.
In order to expand the clothing collection in the boutique, Luisana wants
to buy some clothes from a fashion designer. After examining Luisana‘s
audited financial statements, the fashion designer concludes that she is
assured a collection from Luisana. Which of the following statements
will weaken the argument? The fashion designer makes her collections
within two months of sale. Luisana‘s liquid assets are just enough to
meet her current liabilities. Luisana‘s boutique faces increased
38. competition from other designer boutiques. Luisana has owned the
boutique for only three years and has no prior experience of running a
business. WarmLiquid Corp., a manufacturer of water heaters, produces
30 water heaters per week. Past records indicate that 10% of total water
heaters produced in a week are likely to be defective. Suppose a quality
check was conducted on a sample of six water heaters. What is the
probability that four out of six water heaters will be defective? 0.08 0.56
0.46 0.76 In an apparel store, one individual is assigned the task of
recording the cash received from customers. Another individual is
responsible for the creation and handing over of credit memos to
customers. These measures are taken to avoid the risk of fraud. Which of
the following principles of internal control activities does this scenario
best illustrate? Physical controls Documentation procedures Segregation
of duties Independent internal verification Gharial LLC is a company
that manufactures and leases cars. To increase its production capacity,
the CEO of Gharial LLC has decided to build a new manufacturing
plant. The company requires a loan from a bank, and submits its
financial statements to the bank. The CEO believes that the loan will be
approved because of the company‘s liquidity. Which of the following
strengthens the CEO‘s argument? The cost of building the
manufacturing plant will be offset by the profit Gharial LLC earns.
Gharial LLC‘s financial statements show a positive working capital. The
manufacturing plant will be amortized over the next thirty years. Gharial
LLC‘s earnings per share are equal to that of other similar companies.
Telda Corp. is a large accounting firm. It has an office in each of the 27
states of Kavenia. The chairperson of Telda Corp.: I believe that if
employees work in the same office for a long time, issues like
favoritism, complacency, and misuse of authority are likely to develop.
Therefore, I propose a policy that requires at least the employees in
managerial positions and above to be transferred to a different office
every five years. This policy will be well received by our employees and
discourage them from leaving our company. Which of the following
statements, if true, would strengthen the chairperson‘s argument?
Cultural differences may lead to different working styles in the different
office locations of Telda Corp. Introducing policy changes without
39. consulting the relevant stakeholders is against the work culture of Telda
Corp. The technical skills required to work vary from team to team in
Telda. Rotating employees among different office locations leads to
greater employee cohesion in companies. Secaucuss Co. has been in the
business of manufacturing office supplies for the last five years.
Recently, the company issued more shares to the public to raise capital
for its expansion. Expanding its operations into office maintenance
helped it generate additional cash inflows. Since the company expanded
and issued more shares, the stockholders‘ equity should also have
increased. However, the stockholders‘ equity went down this year.
Which of the following statements best explains why the stockholders‘
equity went down? The company purchased some new machines to
speed up its manufacturing process. The company employed a predatory
pricing strategy to increase its market share. The company collected
revenue from services provided on an accrual basis. The company
declared a 2-for-1 stock split during the current year. Reinek Company
sold a fixed asset for $25,000. The asset was originally purchased at a
cost of $64,000. On the date of sale, the accumulated depreciation was
$53,000. Calculate the gain or loss on the sale of the asset. Loss of
$39,000 Gain of $14,000 Loss of $36,000 Gain of $25,000 Cardice
Services Inc. employs more than 5,000 telephone operators globally to
address customer complaints. To improve the response time for
addressing these complaints, the management decides to automate the
responses to all the frequently asked queries. The management predicts
that at least 60% of the customer queries will be resolved without the
need for human intervention. If the company implements the process, at
least 2,500 telephone operators will lose their jobs. To oppose the
management‘s decision all the employees threaten go on an indefinite
strike. Which of the following contingency approaches is commonly
used to overcome resistance in such situations? Explicit coercion
Facilitation and support Participation and involvement Negotiation and
agreement From the information given below, calculate the net cash
flows from operating activities using the indirect method. Net income
$170,000 Depreciation 5,750 Loss on disposal of plant asset
4,000 Increase in inventory 7,500 Increase in prepaid expenses
40. 5,460 Decrease in accounts payable 6,750 $160,040 $152,040
$173,540 $176,460 Elanke, an owner of a restaurant, has the following
financial information for the year ending December 31, 2016. Revenue
earned $410,000 Cash received from customers 300,000 Expenses
incurred in the purchase of ingredients 250,000 Depreciation incurred
during the year 700 Cash paid for miscellaneous expenses incurred in
the year 2015 120,000 Based on the accrual basis of accounting,
Elanke‘s net income for the year is __________. $159,300 $39,300
$339,300 $459,300 A company issues 100,000 shares at $50 per share. It
has a debt-equity ratio of 2:1. If the company announces a 3-for-1 stock
split, what will be the result? The total stockholder‘s equity will increase
and the debt-equity ratio will decrease. The total stockholder‘s equity
will decrease and the debt-equity ratio will remain unchanged. The total
stockholder‘s equity and the debt-equity ratio will decrease. The total
stockholders‘ equity and the debt-equity ratio will remain unchanged.
Calculate the operating profit or (loss) from the information given
below. Sales revenue $320,000 Sales returns 11,000 Cost of goods
sold 210,000 Selling expense 23,520 Administrative expense
46,270 Marketing expense 26,880 Research and development
6,300 ($3,970) $3,970 $7,030 ($7,030) The HR manager of Delta
Corp.: According to our rewards and recognition program, employee
achievements are acknowledged and employees are given gift vouchers
through emails on reaching milestones and targets. I feel this is not
enough to make employees feel appreciated. In my previous company,
work anniversaries and professional achievements were celebrated in
organization-wide meetings, where the concerned employee would be
publicly rewarded. After all, I would love it if my efforts were
recognized like this! Therefore, such an idea would be a great success in
our company. Which of the following statements, if true, weakens the
HR manager‘s argument? The HR manager of Delta Corp.: According to
our rewards and recognition program, employee achievements are
acknowledged and employees are given gift vouchers through emails on
reaching milestones and targets. I feel this is not enough to make
employees feel appreciated. In my previous company, work
anniversaries and professional achievements were celebrated in
41. organization-wide meetings, where the concerned employee would be
publicly rewarded. After all, I would love it if my efforts were
recognized like this! Therefore, such an idea would be a great success in
our company. Employees are not motivated to perform well at their jobs
if their work is not appreciated and rewarded. The HR manager‘s
previous company did not offer promotions to its employees easily.
Delta Corp.‘s policy requires the CEO of the company to be present in
every town hall. Delta Corp. does not have sufficient funds to organize
frequent town halls. Calculate the cost of goods sold based on the
following information. Inventory at the beginning of 2016 $ 54,000
Purchases 450,000 Purchase returns 12,800 Inventory at the end of
2016 60,000 $443,200 $431,200 $491,200 $444,000 Earnings per share
(EPS) is an indicator of a company‘s profitability and how its stocks are
valued. EPS of a company is directly proportional to its net income. The
net income of Tolut Inc. for this year has decreased by 10 percent from
last year‘s figures. Therefore, the company‘s EPS would be less than
what it was last year. Which of the following statements, if true,
strengthens the argument? Tolut Inc.‘s stocks were undervalued in the
market last year. A high EPS indicates that the company has a high
potential for growth in the future. Tolut Inc. has issued additional
common shares in the current year. Earnings per share do not necessarily
fall every time there is a rise in the taxes paid by the company. Raetal
Inc. acquired 2,000 shares of its own stock of par value $1 for $20 per
share. Which of the following is the correct journal entry to record this
transaction? Treasury Stock 40,000 Cash 40,000 Treasury Stock 2,000
Common Stock 2,000 Treasury Stock 2,000 Cash 2,000 Cash 40,000
Treasury Stock 40,000 Leadership roles require the display of classic
extrovert behavior such as speaking confidently in public, building large
social networks, and allowing your successes as well as failures to be
scrutinized by your stakeholders. These abilities are so integral to
leadership roles that people who step into such roles learn to master
extrovert behavior regardless of their actual personalities. Which of the
following can be inferred from the given passage? One can acquire
extrovert behavior by becoming a leader. Having large social networks
helps in the development of public-speaking skills. Leaders should learn
42. from both their successes and their failures. People who are extroverted
become successful leaders. Janet works as a senior software developer in
a multinational IT firm. She prefers to work as an individual contributor
and volunteers to work on challenging projects. The firm encourages
Janet and other people like her by assigning them to projects that require
a great deal of innovation. The firm motivates Janet by appealing to her
need for __________. power security achievement affiliation Calculate
the revenue for the year ending December 31, 2016, based on the
information given below. 2016 2017 Retained earnings, January 1
$14,500 $ X Revenue for the year Y 48,500 Expenses for
the year 44,800 42,700 Dividends paid 3,500 5,700 The
ending balance of retained earnings on December 31, 2017, is $18,500.
$15,400 $52,200 $18,400 $33,800 The board of directors of Yudel Corp.
is looking for a new managing director for the company. They find a
candidate, Linda, who is hardworking, passionate, and confident. These
are the characteristics that all the past leaders of Yudel Corp. had in
common. Therefore, the board concludes that hiring Linda as the new
managing director will contribute positively to the company‘s success.
The board of directors relies on the assumption that: Linda has worked
in companies similar to Yudel Corp. in the past. the leaders of other
companies have characteristics in common with the leaders of Yudel
Corp. Linda will not have any other job offer to consider when Yudel
Corp. offers her the position of managing director. Linda‘s goals, as a
leader, are compatible with the culture and vision of Yudel Corp.
Financial analyst: Linksus Tech is a company that manufactures drill
bits and screwdrivers. Over the last year, its sales have not shown a
significant increase. The company has a large quantity of inventory on
hand, its accounts receivable have doubled, and its accounts payable
have increased threefold. Given this, the company should try to realize
its current assets at the earliest to stay afloat. Which of the following, if
true, would strengthen the argument? Linksus Tech has applied for a
short-term loan to meet its working capital requirements. The current
liabilities are expected to be due within the next three months. The
demand for the products sold by the company is expected to increase.
The company will introduce a much-awaited new product into the
43. market in the following year. Neha is a communications manager in a
reputed software company. She firmly believes that men do not prefer
working with women supervisors because they think women are inferior
to them. Jordon is Neha‘s manager and elder to her by 10 years. Every
time Neha interacts with Jordon, she downplays her dominant nature by
acting naive. However, she is aggressive and dominant with younger
employees. Which of the following approaches to managing diversity
should be used to help Neha overcome her prejudiced attitude?
Educating Neha about stereotyping people of different age and sex
Isolating Neha by putting her in special projects that require minimum
interaction with other employees Acknowledging Neha‘s beliefs but not
valuing or accepting them Hiring more women employees to create an
environment that is more diverse Aaron has recently been recruited as
the managing director of Ikara Corp., which is a leading accounting firm
with a global presence. He learns that the employees of Ikara felt that the
previous managing director was unapproachable and did not encourage
employees to express their problems or ideas to him. Aaron does not
want to be perceived the same way. To appear friendlier toward his
employees, he decides to use a bit of humor in his electronic
communication. This will surely enable him to build a good rapport with
the employees of Ikara Corp. Which of the following, if true, most
seriously undermines Aaron‘s argument? Aaron has previously worked
in companies where communication between employees was informal.
Aaron‘s electronic communication is mostly directed to the senior
management of the company. Managers must seem approachable to their
teams, especially when their teams are spread across the globe. Some
employees of Ikara belong to cultures where humor is likely to be
perceived as ridicule. Gharial LLC is a company that manufactures and
leases cars. To increase its production capacity, the CEO of Gharial LLC
has decided to build a new manufacturing plant. The company requires a
loan from a bank, and submits its financial statements to the bank. The
CEO believes that the loan will be approved because of the company‘s
liquidity. Which of the following, if true, weakens the CEO‘s argument?
The price of Gharial LLC‘s shares has remained constant over the past
year. Gharial LLC specializes in high-end cars. The current ratio of
44. Gharial LLC is higher than one. A majority of Gharial LLC‘s current
assets are in the form of inventory. CodeGiant Inc. is a startup company
that specializes in software development. The government levies a sales
tax of 7.5% on the sale of the company‘s services. Mathew, the
company‘s CTO, decides to introduce a new functional structure that
will reduce the time taken to develop each software. He believes that this
will reduce the company‘s costs and compensate for the taxes. When he
presents his idea to the company‘s investors, they become apprehensive
that such changes may lead to internal conflicts. The respective
department heads are also apprehensive because they do not know
whether they will fit into the new structure. They question the validity of
Mathew‘s suggestion. Which of the following stages of the group
development process does this scenario portray? Adjourning Norming
Storming Forming
==============================================
BUS 475 Capstone Final Examination Part 2 (New, 2019)
FOR MORE CLASSES VISIT
www.bus475nerd.com
BUS 475 Capstone Final Examination Part 2 A company declared a cash
dividend of $8560 on December 5 2015. The company made a cash
dividend payment on January 8, 2016. What is the cumulative effect of
the declaration and payment of the cash dividend on the company‘s
financial statements? Total liabilities will remain the same, and total
assets will increase by $8,560. Stockholders‘ equity and total assets will
decrease by $8,560. Stockholders‘ equity will increase by $8,560, and
45. total assets will remain the same. Total assets and liabilities will increase
by $8,560. Rilm Corporation has been recording investment income as
revenue for the past year with the aim of making the financial condition
of the company appear better than it actually is. Jon, one of the
company‘s employees, becomes aware of this fraudulent activity and
immediately reports it to the appropriate authorities. After conducting
several investigations, the authorities book the company under the
Sarbanes-Oxley Act. Which of the following statements best explains
why Jon did not hesitate to alert the authorities about the company‘s
fraudulent activity? Under the Sarbanes-Oxley Act, whistleblowers who
suffer retaliation are allowed to recover criminal damages but not civil
damages. The Sarbanes-Oxley Act requires accounting firms to separate
their auditing and consulting functions. There are no limitations to the
protections offered by the Sarbanes-Oxley Act to whistleblowers. The
Sarbanes-Oxley Act provides for the reinstatement of whistleblowers in
cases of improper termination. LaBelle a famous cosmetic brand
introduces a new skin cleanser. The product does extremely well and
reaps huge profits for the company. After using the product for a few
months, consumers complain of rashes and allergies. An external
chemical agency accuses the company of using banned substances in its
products. When investigated, the company‘s CEO confesses that he
knew about the substance but did not act because of the product‘s initial
success. Which of the following could be the cause for the CEO‘s
unethical behavior? The slippery slope Overvaluing outcomes Indirect
blindness Ill-conceived goals Elena Corporation owes Volmare Inc. an
advertising agency a sum of $42000 for services rendered. When Elena
Corporation goes public it offers the agency 7000 shares of its common
stock in exchange for the payable service cost. The agency accepts the
offer. The stock trades at $6 per share and the par value of the stock is
$1. Which of the following is the correct journal entry to record this
transaction in the books of Elena Corporation? CoolWindows Corp.
produces 2000 air conditioners per week in three plants: Plant I, Plant II,
and Plant III. Plant I produces 800 air conditioners per week, Plant II
produces 500 air conditioners per week, and Plant III produces 700 air
conditioners per week. The probability of an air conditioner being
46. defective is 7% for Plant I, 5% for Plant II, and 6% for Plant III,
respectively. In a random check, a defective air conditioner is found.
What is the probability that the air conditioner was produced in Plant II?
25 18 20 75 Calculate the expected return for a stock based on the
following information. Expected dividend $2.20 Current price
$47.82 Expected growth rate 5.67% 6% 27% 87% 46% As a
common practice Rova Inc. mostly collects upfront payments for goods
that will be delivered to customers in the future. Unearned revenues
contribute significantly to the company‘s current liabilities.
Commentator A: The advance cash received from customers can be used
to finance the company‘s operations, and the corresponding liabilities
that are recorded will appear as sales in future financial statements.
Therefore, this practice is beneficial to Rova Inc. and should be
continued. Which of the following statements, if true, weakens
commentator A‘s argument? Rova Inc.‘s ability to deliver exactly as per
its commitments to its customers is frequently impacted by its unreliable
suppliers. Rova Inc.‘s long-term liabilities are not offset by its current
assets. Rova Inc.‘s cash flow statement shows that the company does not
have enough cash to scale up its operations in the next year. A majority
of the orders received by Rova Inc. from its customers are for
customized products. The senior management of Reska Corp. realizes
the importance of encouraging employees to be creative. In the previous
year, the company organized quarterly town hall meetings, where
employees were given the opportunity to share innovative ideas to tackle
the issues faced by the company and to improve the company‘s overall
performance. However, this plan did not yield the desired result. The
CEO of Reska Corp.: This plan failed because employees tended to be
apprehensive about expressing their ideas in public as they did not know
how the ideas would be received. We must change our strategy and give
employees the opportunity to express their ideas to their managers in
person. This will make the employees feel comfortable expressing their
creativity. Which of the following is assumed by the CEO? Unless the
employees of Reska share their creative ideas, the company‘s overall
performance is unlikely to improve. Employees feel less apprehensive
about expressing their ideas to their managers than about expressing