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BUS 475 Capstone Final Exam Part 1 and 2 (New, 2017)
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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, 2017)
FOR MORE CLASSES VISIT
www.bus475nerd.com
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
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 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 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 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. 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 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?
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 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 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 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 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
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BUS 475 Capstone Final Examination Part 2 (New, 2017)
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
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 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 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 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
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. 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 suppliers
24,000 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 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 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 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 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 asset4,000 Increase in inventory 7,500 Increase in
prepaid expenses 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
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 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
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 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
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BUS 475 Entire Course
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BUS 475 week 1 DQ 1
BUS 475 week 1 DQ 2
BUS 475 Week 1 knowledge Check
BUS 475 Week 2 Individual Assignment Business Model and Strategic
Plan Part I: Conceptualizing a New Product or Service Division of an
Existing Business (2 Papers)
BUS 475 Week 2 Knowledge Check
BUS 475 Week 2 Team Assignment Value Alignment (StarBucks)
BUS 475 week 2 DQ 1
BUS 475 week 2 DQ 2
BUS 475 Week 3 Individual Assignment Business Model and Strategic
Plan Part II: SWOTT Analysis Paper (2 Papers)
BUS 475 Week 3 Team Assignment Functional Area Interrelationships
(Kudler Foods)
BUS 475 week 3 DQ 1
BUS 475 week 3 DQ 2
BUS 475 Week 4 Knowledge check
BUS 475 Week 4 Individual Business Model and Strategic Plan Part III
Balanced Scorecard and Communication Plan (2 Papers)
BUS 475 Week 4 Team Assignment Communication Plan Outline
BUS 475 week 4 DQ 1
BUS 475 week 4 DQ 2
BUS 475 Week 5 Individual Assignment Final Business Model and
Strategic Plan
BUS 475 week 5 DQ 1
BUS 475 week 5 DQ 2
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BUS 475 Week 1 DQ 1
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What is strategic management? What are the roles of mission and vision
statements in strategic management? Can an organization have a
successful strategic plan without effective mission and vision
statements? Why or why not?
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BUS 475 Week 1 DQ 2
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Select a small business that you may want to start. What is strategic
management and planning? Why would a strategic plan be important to
the success of this business? How are the four functions of management
relative to creating and implementing a strategic plan?
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BUS 475 Week 1 knowledge Check 1
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1.Reaching a valid decision is based on the evaluation of arguments. If
we know that a valid argument has true premises, then a decision based
on the argument______________.
2. Identify the fallacy in the following piano store advertisement:
“Pianos are our only business. You’ll get the best deal at the Piano
Experts.”
3.Which of the following statements describes creativity correctly?
4.How would you assess the following statement? Consider both the
nature of the claim and the source. “Lottery director Mark Michalko said
Thursday that allegations that Californians are squandering money they
once used for food to buy lottery tickets ‘are just not correct.’. . .
California Grocers Association president Don Beaver raised the issue
earlier in the week, saying five supermarket chains had complained that
grocery sales dropped about 5 percent after lottery tickets went on sale
October 3.” —Sacramento Bee
5.The Sarbanes–Oxley Act was created in 2002 to improve and maintain
investor confidence. The act includes which of the following:
6.Organizational behavior is examined at three main levels.
7.Employees who have intrinsic work values will be motivated by
8.Research on the five-stage model of group development shows that
9.The extent to which a leader actually does help a group or organization
to achieve its goals is best described as
10.When the business environment is __________, an organization is
most likely to decentralize authority and empower its employees to
make operating decisions.
11.To make your communication more effective
12.Which of the following meeting technologies would be most
effective for negotiations, collaborative problem solving, and other
complex discussions?
13.Most persuasive messages combine
14.Important design elements to consider when creating slides include
which of the following:
15.Which of the following would be the best wording to use on a
resume?
16.The __________ approach to ethics maintains that an ethical action is
the one that provides the most good or does the least harm.
17.Which type of privacy policy restricts an organization from collecting
personal information until the customer specifically authorizes it?
18.Wireless communication includes which of the following:
19.Enterprise resource planning applications seeks to integrate a number
of issues, including which of the following:
20.The request for proposal (RFP) is one of the key tools in acquiring
information systems and applications. Which of the following statements
best characterizes the RFP?
21.The relationship between jurisdiction and venue of state and federal
courts
22.Businesses owe customers (business invitees) visiting their stores
23.A legally enforceable contract always requires
24.Regulatory (or administrative) law arises from
25.The purpose of a clear ethical code in a business is
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BUS 475 Week 1 knowledge Check
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1.Reaching a valid decision is based on the evaluation of arguments. If
we know that a valid argument has true premises, then a decision based
on the argument______________.
2. Identify the fallacy in the following piano store advertisement:
“Pianos are our only business. You’ll get the best deal at the Piano
Experts.”
3. Which of the following statements describes creativity correctly?
4.
How would you assess the following statement? Consider both the
nature of the claim and the source. “Lottery director Mark Michalko said
Thursday that allegations that Californians are squandering money they
once used for food to buy lottery tickets ‘are just not correct.’. . .
California Grocers Association president Don Beaver raised the issue
earlier in the week, saying five supermarket chains had complained that
grocery sales dropped about 5 percent after lottery tickets went on sale
October 3.” —Sacramento Bee
5. The Sarbanes–Oxley Act was created in 2002 to improve and
maintain investor confidence. The act includes which of the following:
6. Organizational behavior is examined at three main levels.
7. Employees who have intrinsic work values will be motivated by
8. Research on the five-stage model of group development shows that
9. The extent to which a leader actually does help a group or
organization to achieve its goals is best described as
10. When the business environment is __________, an organization is
most likely to decentralize authority and empower its employees to
make operating decisions.
11. To make your communication more effective
12. Which of the following meeting technologies would be most
effective for negotiations, collaborative problem solving, and other
complex discussions?
13. Most persuasive messages combine
14. Important design elements to consider when creating slides include
which of the following:
15. Which of the following would be the best wording to use on a
resume?
16. The __________ approach to ethics maintains that an ethical action
is the one that provides the most good or does the least harm.
17. Which type of privacy policy restricts an organization from
collecting personal information until the customer specifically authorizes
it?
18. Wireless communication includes which of the following:
19. Enterprise resource planning applications seeks to integrate a
number of issues, including which of the following:
20. The request for proposal (RFP) is one of the key tools in acquiring
information systems and applications. Which of the following statements
best characterizes the RFP?
21. The relationship between jurisdiction and venue of state and federal
courts
22. Businesses owe customers (business invitees) visiting their stores
23. A legally enforceable contract always requires
24. Regulatory (or administrative) law arises from
25. The purpose of a clear ethical code in a business is
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BUS 475 Week 2 DQ 1
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What is a SWOTT analysis? What is its purpose in strategic planning?
Must you conduct a SWOTT analysis to have an effective strategic plan?
Why or why not?
---------------------------------------------------------------------------
BUS 475 Week 2 DQ 2
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What are the key planning factors for competitive success? Provide an
example of an organization that has achieved competitive success
through planning. Provide an example of an organization that has failed
to achieve competitive success as the result of failed planning.
---------------------------------------------------------------------------
BUS 475 Week 2 Individual Assignment Business Model and
Strategic Plan Part I: Conceptualizing a New Product or Service
Division of an Existing Business (2 Papers)
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This tutorial contains 2 Papers
Business Model and Strategic Planning Outline as a guide to complete
sections of your capstone project each week. A final paper is due in
Week 5. Cite your resources.
Write a 1,400- to 1,750-word paper in which you explain the importance
of innovation in your selected business's vision, mission, and values, and
determine your business model for this new division. Include the
following:
Propose a new product or service for the new company division. The
division should be customer-focused with an innovative mission
statement. Ensure that you are differentiating your product or service.
Describe how the division addresses customer needs and achieves
competitive advantage.
Create a vision and a business model for this new division that clearly
demonstrates your decision on what you want your business to become
in the future.
Explain how the vision, mission, and value of the new division align
with the company's mission and vision.
Summarize how the vision, mission, and values guide the division's
strategic direction.
Define your guiding principles and values for your division in the
context of culture, social responsibility, and ethics.
Format your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment
---------------------------------------------------------------------------
BUS 475 Week 2 Knowledge Check 1
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1. Compared with other approaches to business, the marketing concept is
distinct in that it
2. A company provides its advertising agency with a statement about a
new product to use in designing an advertising campaign, and this
statement includes a description of the target market, the product type,
the primary benefits of using the product, and how this product is
different from, and better than, competitive products. What type of
statement is this?
3. The sales analysis of a product revealed that profits were highest
when it was initially introduced into the market with a high selling price.
However, the price was gradually reduced as it started facing
competition as substitutes entered the market. This is an example of a(n)
4. Blending the firm's promotion efforts to convey a complete and
consistent message is the goal of
5. According to the concept of social responsibility, a firm has a duty to
6. The principal participants in the financial markets are
7. You just purchased a parcel of land for $10,000. If you expect a 12%
annual rate of return on your investment, how much will you sell the
land for in 10 years? Note. Due to rounding and method of calculation,
your answer might vary slightly. Choose the closest answer.
8. Bull Gator Industries is considering a new assembly line costing
$6,000,000. The assembly line will be fully depreciated by the
simplified straight line method over its 5-year depreciable life.
Operating costs of the new machine are expected to be $1,100,000 per
year. The existing assembly line has 5 years remaining before it will be
fully depreciated and has a book value of $3,000,000. If sold today the
company would receive $2,400,000 for the existing machine. Annual
operating costs on the existing machine are $2,100,000 per year. Bull
Gator is in the 46 percent marginal tax bracket and has a required rate of
return of 12 percent. Calculate the net present value of replacing the
existing machine. Note. Due to rounding and method of calculation,
your answer might vary slightly. Choose the closest answer.
9. A strong stock market and reasonably good earnings have caused the
price of the firm's common stock to increase by 25%.
10. Buying and selling in more than one market to make a riskless profit
is called
11. The United States imposes substantial taxes on cigarettes but not on
loose tobacco. When the tax on cigarettes went into effect, the demand
for home cigarette rolling machines most likely
12. Keynes believed that an increase in savings would
· raise aggregate demand by reducing investment
13. Which of the following monetary policies reduces aggregate demand
and output?
14. Deficits may be desirable in the short run if they
15. If for a country, the quantity of its currency demanded exceeds the
quantity supplied, then there is a
16. Suppose that college tuition is higher this year than last year and that
more students are enrolled in college this year than last year. Based on
this information, we can best conclude that
17. Economic efficiency is achieved at a particular output level if
18. A perfectly competitive firm will be profitable if price at the profit-
maximizing quantity is above
19. How are goods manufactured in other countries creating jobs in the
United States?
---------------------------------------------------------------------------
BUS 475 Week 2 Knowledge Check
FOR MORE CLASSES VISIT
www.bus475nerd.com
1. Compared with other approaches to business, the marketing concept is
distinct in that it
2. A company provides its advertising agency with a statement about a
new product to use in designing an advertising campaign, and this
statement includes a description of the target market, the product type,
the primary benefits of using the product, and how this product is
different from, and better than, competitive products. What type of
statement is this?
3. The sales analysis of a product revealed that profits were highest
when it was initially introduced into the market with a high selling price.
However, the price was gradually reduced as it started facing
competition as substitutes entered the market. This is an example of a(n)
4. Blending the firm's promotion efforts to convey a complete and
consistent message is the goal of
5. According to the concept of social responsibility, a firm has a duty to
6. The principal participants in the financial markets are
7. You just purchased a parcel of land for $10,000. If you expect a 12%
annual rate of return on your investment, how much will you sell the
land for in 10 years? Note. Due to rounding and method of calculation,
your answer might vary slightly. Choose the closest answer.
8. Bull Gator Industries is considering a new assembly line costing
$6,000,000. The assembly line will be fully depreciated by the
simplified straight line method over its 5-year depreciable life.
Operating costs of the new machine are expected to be $1,100,000 per
year. The existing assembly line has 5 years remaining before it will be
fully depreciated and has a book value of $3,000,000. If sold today the
company would receive $2,400,000 for the existing machine. Annual
operating costs on the existing machine are $2,100,000 per year. Bull
Gator is in the 46 percent marginal tax bracket and has a required rate of
return of 12 percent. Calculate the net present value of replacing the
existing machine. Note. Due to rounding and method of calculation,
your answer might vary slightly. Choose the closest answer.
9. A strong stock market and reasonably good earnings have caused the
price of the firm's common stock to increase by 25%.
10. Buying and selling in more than one market to make a riskless profit
is called
11. The United States imposes substantial taxes on cigarettes but not on
loose tobacco. When the tax on cigarettes went into effect, the demand
for home cigarette rolling machines most likely
12. Keynes believed that an increase in savings would
· raise aggregate demand by reducing investment
13. Which of the following monetary policies reduces aggregate demand
and output?
14. Deficits may be desirable in the short run if they
15. If for a country, the quantity of its currency demanded exceeds the
quantity supplied, then there is a
16. Suppose that college tuition is higher this year than last year and that
more students are enrolled in college this year than last year. Based on
this information, we can best conclude that
17. Economic efficiency is achieved at a particular output level if
18. A perfectly competitive firm will be profitable if price at the profit-
maximizing quantity is above
19. How are goods manufactured in other countries creating jobs in the
United States?
---------------------------------------------------------------------------
BUS 475 Week 2 Team Assignment Value Alignment
(StarBucks)
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Discuss with your Learning Team an existing organization with which
you are familiar that is different than the one you used for the
Conceptualizing a Business paper.
Write a 700- to 1,050-word paper in which you analyze the individual
values and the organization’s values as reflected by the organization’s
plans and actions. Include the following in your paper:
· Analyze the origin(s) and subsequent evolution of your personal
and workplace values.
· Explain how your individual values drive your actions and
behaviors, and analyze the alignment between your values and actions
and behaviors.
· Analyze the degree of alignment between the organization’s stated
values and the organization’s actual plans and actions.
· Explain the differences and analyze the degree of alignment
between your values and the organization’s values as reflected by the
organization’s plans and actions.
Format your paper consistent with APA guidelines.
Prepare to discuss this assignment with the class.
---------------------------------------------------------------------------
BUS 475 Week 3 DQ 1
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What are strategic objectives? What is the purpose of strategic
objectives? What makes an effective strategic objective? What are
examples of strategic objectives for you organization or one with which
you are familiar?
---------------------------------------------------------------------------
BUS 475 Week 3 DQ 2
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What is the difference among strategic, long-term, and short-term
objectives? What is the relationship between objectives and goals? What
are examples of this relationship?
---------------------------------------------------------------------------
BUS 475 Week 3 Individual Assignment Business Model and
Strategic Plan Part II: SWOTT Analysis Paper (2 Papers)
FOR MORE CLASSES VISIT
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This tutorial contains 2 Papers
Conduct an internal and external environmental analysis, and a supply
chain analysis for your proposed new division and its business model.
Create a SWOTT table summarizing your findings. Your environmental
analysis should consider, at a minimum, the following factors. For each
factor, identify the one primary strength, weakness, opportunity, threat,
and trend, and include it in your table.
External forces and trends considerations:
Legal and regulatory
Global
Economic
Technological
Innovation
Social
Environmental
Competitive analysis
Internal forces and trends considerations:
Strategy
Structures
Processes and systems
Resources
Goals
Strategic capabilities
Culture
Technologies
Innovations
Intellectual property
Leadership
Write a synopsis of no more than 1,050 words in which you analyze
relevant forces and trends from the list above. Your analysis must
include the following:
Include economic and legal and regulatory forces and trends.
Critique how well the organization adapts to change.
Analyze and explain the supply chain of the new division of the existing
business. Share your plans to develop and leverage core competencies
and resources within the supply chain in an effort to make a positive
impact on the business model and the various stakeholders.
Identify issues and/or opportunities:
Identify the major issues and/or opportunities that the company faces
based on your analysis.
Generate a hypothesis surrounding each issue and research questions to
use for conducting analysis.
Identify the circumstances surrounding each issue; classify the
circumstances; attribute the importance of each classification; and test
the accuracy of the importance for each classification.
Format your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
---------------------------------------------------------------------------
BUS 475 Week 3 Team Assignment Functional Area
Interrelationships (Kudler Foods)
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Select one organization of the Virtual Organizations from the student
website.
Write a 1,400- to 2,100-word paper in which you complete the
following:
· State the primary reasons for the organization’s existence from an
analysis of the mission, vision, values, and goals.
· Analyze the reason for the type of organizational structure
employed by the organization, and identify the key positions that support
that organizational structure.
· Identify and explain the steps of the collaboration process among
the functional areas that must be employed to achieve organizational
goals, and prepare an action plan to implement the collaboration process.
· Identify and provide an example of the use of lateral collaboration
and vertical collaboration within the organization, and prepare an action
plan to use lateral and vertical collaboration.
Identify the key stakeholders and their roles needed to achieve the
organizational goals, and recommend the collaborative interactions
among the key stakeholders to facilitate the organization’s success.
---------------------------------------------------------------------------
BUS 475 Week 4 DQ 1
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Why is it important to continuously update the implementation and
communication of a strategic plan? Who should be responsible for
updating and communicating a strategic plan? Why?
---------------------------------------------------------------------------
BUS 475 Week 4 DQ 2
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What things should be taken into consideration in the creation of a
roadmap for a strategic plan? What are examples of external and
internal change agents? What role do change agents play in the
execution of a road map for a strategic plan?
---------------------------------------------------------------------------
BUS 475 Week 4 Individual Business Model and Strategic Plan
Part III Balanced Scorecard and Communication Plan (2 Papers)
FOR MORE CLASSES VISIT
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This tutorial contains 2 Papers
Identify key trends, assumptions, and risks in the context of your final
business model.
Develop the strategic objectives for your new division of the existing
business in a balanced scorecard format in the context of key trends,
assumptions, and risks.The strategic objectives are measures of attaining
your vision and mission. As you develop them, consider the vision,
mission, and values for your business and the outcomes of your SWOTT
analysis and supply chain analysis.
Consider the following four quadrants of the balanced scorecard when
developing your strategic objectives:
Shareholder Value or Financial Perspective, includes strategic objectives
in areas such as:
Market share
Revenues and costs
Profitability
Competitive position
Customer Value Perspective, includes strategic objectives in areas such
as:
Customer retention or turnover
Customer satisfaction
Customer value
Process or Internal Operations Perspective, includes strategic objectives
in areas such as:
Measure of process performance
Productivity or productivity improvement
Operations metrics
Impact of change on the organization
Learning and Growth (Employee) Perspective, includes strategic
objectives in areas such as:
Employee satisfaction
Employee turnover or retention
Level of organizational capability
Nature of organizational culture or climate
Technological innovation
Develop at least three strategic objectives for each of the four balanced
scorecard areas identified (Financial, Customer, Process, Learning and
Growth). Your objectives should be selected, in part, based on an
evaluation of a number of potential alternatives to the issues and/or
opportunities identified in the SWOTT Analysis paper and table you
completed in Week 3.
Base your solutions on a ranking of alternative solutions that includes an
identification of potential risks and mitigation plans, and a stakeholder
analysis that includes mitigation and contingency strategies. You should
also incorporate the ethical implications of your solutions into your
selection.
For each strategic objective, develop a metric and target using a
balanced scorecard format. (For example, a strategic objective in the
shareholder or Financial Perspective is to increase market share. A
metric to actually measure this strategic objective of market share
increase is, "The percentage of increase in market share." The target is
the specific number to be achieved in a particular time period. The target
for the metric of "Increase market share" could be "Increase market
share by 2% for each of the next 3 years" of an increase of 2% per year
for 3 years.)
Outline a brief communication plan discussing how you will
communicate the company's strategic objectives that includes the
following:
Define the purpose.
Define the audience.
Identify the channel(s) of communication and why you selected that
channel.
Write a 1,050- to 1,400-word strategic objectives summary. Include
your balanced scorecard and its impact on all stakeholders, and the
communication plan.
Format paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
---------------------------------------------------------------------------
BUS 475 Week 4 Knowledge check 1
FOR MORE CLASSES VISIT
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1. A fast-food restaurant asks customers to evaluate the drive-thru
service as good, average, or poor. What level of data measurement is this
classification?
2. In order to determine the average amount spent in November on
Amazon.com a random sample of 144 Amazon accounts were selected.
The sample mean amount spent in November was $250 with a standard
deviation of $25. Assuming that the population standard deviation is
unknown, what is a 95% confidence interval for the population mean
amount spent on Amazon.com in November?
3. A shipment of 20 DVDs has arrived at a video rental store. Based on
past experience, the manager knows that 10% of all new DVDs sent to
the store have a visible defect. The manager tells you to begin inspecting
the new DVDs one at a time at random until you find the first DVD that
has a defect. If 10% of the DVDs have a visible defect in the new
shipment, what is the probability that the first DVD that has a defect is
the 3rd one that you inspect? (Round your answer to 3 decimal places.)
4. An insurance agent has selected a sample of drivers that she insures
whose ages are in the range from 16–42 years old. For each driver, she
records the age of the driver and the dollar amount of claims that the
driver filed in the previous 12 months. A scatterplot showing the dollar
amount of claims as the response variable and the age as the predictor
shows a linear regression line with: y^=3710 – 55.4x. If the age of a
driver increases by 1 year, by how much and in what direction would the
dollar amount of claims be predicted to change for the driver?
5. A researcher claims that the proportion of employees who play video
games in the workplace is higher than it was 10 years ago. You might be
willing to reject the null hypothesis of no change with a = 0.10 or larger.
The p-value for this test is 0.15. In this case the researcher should
6. The general plan of major actions through which a firm intends to
achieve is long-term objectives is called its
7. How valuable a low-cost leader's cost advantage is depends on
8. Which of the following represent marketing capabilities at the growth
stage of industry evolution?
9. __________ is an organization structured around the idea of sharing
knowledge, seeking knowledge, and creating opportunities to create new
knowledge.
10. Which of the following types of strategic control has a low degree of
formalization?
11. Investors and creditors are particularly interested in this financial
statement because it tells them what is happening to the company’s most
important resource?
12. The cash basis of accounting is prohibited under GAAP for the
following reason:
13. Use the following data to determine the total dollar amount of assets
to be classified as property, plant, and equipment. Eddy Auto Supplies
Balance Sheet December 31, 2014 Cash $84,000 Accounts payable
$110,000 Accounts receivable $80,000 Salaries and wages payable
$20,000 Inventory $140,000 Mortgage payable $180,000 Prepaid
insurance $60,000 Total liabilities $310,000 Stock investments $170,000
Land $190,000 Buildings $226,000 Common stock $240,000 Less:
Accumulated Retained earnings $500,000 depreciation ($40,000)
$186,000 Total stockholders’ equity $740,000 Trademarks $140,000
Total liabilities and Total assets $1,050,000 Stockholders’ equity
$1,050,000
14. The manager of Weiser is given a bonus based on net income before
taxes. The net income after taxes is $35,700 for FIFO and $29,400 for
LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is
the manager's bonus if FIFO is adopted instead of LIFO?
15. The Sarbanes–Oxley Act of 2002 requires publicly traded U.S.
companies to take the following actions to defect and prevent fraud:
· Adopt accrual basis of accounting, maintain an adequate system
of internal controls, and create penalties for noncompliance
· Maintain an adequate system of internal controls, provide
additional training to managers and accountants regarding internal
controls, and publish internal controls on the company’s public website
16. On July 1, 2014, Linden Company purchased the copyright to
Norman Computer Tutorials for $140,000. It is estimated that the
copyright will have a useful life of 5 years. The amount of amortization
expense recognized for the year 2014 would be
17.ABC Corp. receives a 7-month interest-bearing promissory note in
the amount of $360,000 on February 1. The interest rate is 15%. What is
the total interest expense ABC Corp will record assuming ABC makes
all of its payments?
18. Logan Corporation issues 50,000 shares of $50 par value preferred
stock for cash at $60 per share. The entry to record the transaction will
consist of a debit to cash for $3,000,000 and a credit or credits to
· preferred stock of $3,000,000
19. Which of the following tools of analysis is used to evaluate financial
statement information by expressing financial statement data as a
percentage over a base amount?
20.The Sarbanes–Oxley Act of 2002 requires publically-traded U.S.
companies to provide great internal controls. The five primary
components of an internal control system include: a control
environment, risk assessment, information and communication,
monitoring, and
---------------------------------------------------------------------------
BUS 475 Week 4 Knowledge check
FOR MORE CLASSES VISIT
www.bus475nerd.com
1. A fast-food restaurant asks customers to evaluate the drive-thru
service as good, average, or poor. What level of data measurement is this
classification?
2. In order to determine the average amount spent in November on
Amazon.com a random sample of 144 Amazon accounts were selected.
The sample mean amount spent in November was $250 with a standard
deviation of $25. Assuming that the population standard deviation is
unknown, what is a 95% confidence interval for the population mean
amount spent on Amazon.com in November?
3. A shipment of 20 DVDs has arrived at a video rental store. Based on
past experience, the manager knows that 10% of all new DVDs sent to
the store have a visible defect. The manager tells you to begin inspecting
the new DVDs one at a time at random until you find the first DVD that
has a defect. If 10% of the DVDs have a visible defect in the new
shipment, what is the probability that the first DVD that has a defect is
the 3rd one that you inspect? (Round your answer to 3 decimal places.)
4. An insurance agent has selected a sample of drivers that she insures
whose ages are in the range from 16–42 years old. For each driver, she
records the age of the driver and the dollar amount of claims that the
driver filed in the previous 12 months. A scatterplot showing the dollar
amount of claims as the response variable and the age as the predictor
shows a linear regression line with: y^=3710 – 55.4x. If the age of a
driver increases by 1 year, by how much and in what direction would the
dollar amount of claims be predicted to change for the driver?
5. A researcher claims that the proportion of employees who play video
games in the workplace is higher than it was 10 years ago. You might be
willing to reject the null hypothesis of no change with a = 0.10 or larger.
The p-value for this test is 0.15. In this case the researcher should
6. The general plan of major actions through which a firm intends to
achieve is long-term objectives is called its
7. How valuable a low-cost leader's cost advantage is depends on
8. Which of the following represent marketing capabilities at the growth
stage of industry evolution?
9. __________ is an organization structured around the idea of sharing
knowledge, seeking knowledge, and creating opportunities to create new
knowledge.
10. Which of the following types of strategic control has a low degree of
formalization?
11. Investors and creditors are particularly interested in this financial
statement because it tells them what is happening to the company’s most
important resource?
12. The cash basis of accounting is prohibited under GAAP for the
following reason:
13. Use the following data to determine the total dollar amount of assets
to be classified as property, plant, and equipment. Eddy Auto Supplies
Balance Sheet December 31, 2014 Cash $84,000 Accounts payable
$110,000 Accounts receivable $80,000 Salaries and wages payable
$20,000 Inventory $140,000 Mortgage payable $180,000 Prepaid
insurance $60,000 Total liabilities $310,000 Stock investments $170,000
Land $190,000 Buildings $226,000 Common stock $240,000 Less:
Accumulated Retained earnings $500,000 depreciation ($40,000)
$186,000 Total stockholders’ equity $740,000 Trademarks $140,000
Total liabilities and Total assets $1,050,000 Stockholders’ equity
$1,050,000
14. The manager of Weiser is given a bonus based on net income before
taxes. The net income after taxes is $35,700 for FIFO and $29,400 for
LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is
the manager's bonus if FIFO is adopted instead of LIFO?
15. The Sarbanes–Oxley Act of 2002 requires publicly traded U.S.
companies to take the following actions to defect and prevent fraud:
· Adopt accrual basis of accounting, maintain an adequate system of
internal controls, and create penalties for noncompliance
· Maintain an adequate system of internal controls, provide additional
training to managers and accountants regarding internal controls, and
publish internal controls on the company’s public website
16. On July 1, 2014, Linden Company purchased the copyright to
Norman Computer Tutorials for $140,000. It is estimated that the
copyright will have a useful life of 5 years. The amount of amortization
expense recognized for the year 2014 would be
17.ABC Corp. receives a 7-month interest-bearing promissory note in
the amount of $360,000 on February 1. The interest rate is 15%. What is
the total interest expense ABC Corp will record assuming ABC makes
all of its payments?
18. Logan Corporation issues 50,000 shares of $50 par value preferred
stock for cash at $60 per share. The entry to record the transaction will
consist of a debit to cash for $3,000,000 and a credit or credits to
· preferred stock of $3,000,000
19. Which of the following tools of analysis is used to evaluate financial
statement information by expressing financial statement data as a
percentage over a base amount?
20.The Sarbanes–Oxley Act of 2002 requires publically-traded U.S.
companies to provide great internal controls. The five primary
components of an internal control system include: a control
environment, risk assessment, information and communication,
monitoring, and_.
---------------------------------------------------------------------------
BUS 475 Week 4 Team Assignment Communication Plan
Outline
FOR MORE CLASSES VISIT
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Develop a generic communications plan and template. This template
will be used to develop a communication plan for your Final Strategic
Plan, due in Week Five.
---------------------------------------------------------------------------
BUS 475 Week 5 DQ 1
FOR MORE CLASSES VISIT
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Why is it necessary to monitor and control strategic plans? Who should
be responsible for monitoring and controlling strategic plans? Why?
What are the pitfalls of failing to monitor and control strategic plans?
---------------------------------------------------------------------------
BUS 475 Week 5 DQ 2
FOR MORE CLASSES VISIT
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As an employee of an organization, what role do you play in the
strategic planning process? What role do you play in the implementation
process? What role do you play in the monitoring and controlling
process?
---------------------------------------------------------------------------
BUS 475 NERD Possible Is Everything / bus475nerd.com
BUS 475 NERD Possible Is Everything / bus475nerd.com

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  • 1. BUS 475 Capstone Final Exam Part 1 and 2 (New, 2017) FOR MORE CLASSES VISIT www.bus475nerd.com BUS 475 Capstone Final Examination Part 1 (New, 2017) BUS 475 Capstone Final Examination Part 2 (New, 2017) --------------------------------------------------------------------------- BUS 475 Capstone Final Examination Part 1 (New, 2017) FOR MORE CLASSES VISIT www.bus475nerd.com 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
  • 2. 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 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
  • 3. 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 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
  • 4. 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
  • 5. 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 illustrates an __________. • ethical dilemma • ethical lapse • absence of codes of professionalism • absence of codes of ethics Kwalkon Computing released a new software update for
  • 6. 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
  • 7. 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. 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
  • 8. 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 and online journals. Which of
  • 9. 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,
  • 10. 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 11%
  • 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
  • 12. 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 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.
  • 13. 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
  • 14. 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. 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
  • 15. 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 2 (New, 2017) FOR MORE CLASSES VISIT www.bus475nerd.com
  • 16. 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 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
  • 17. 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? 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.
  • 18. 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 of internal control systems in organizations. Melanie believes that the human element is an insignificant factor in internal control systems. If Peter wants to
  • 19. 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
  • 20. 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 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
  • 21. 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. 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
  • 22. 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 suppliers 24,000 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 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
  • 23. 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 by its accountants. According to the statement, the profit margin of the company has increased. The sales of its electronic
  • 24. 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
  • 25. 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 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
  • 26. 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 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.
  • 27. 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 asset4,000 Increase in inventory 7,500 Increase in prepaid expenses 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
  • 28. 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 organization-wide meetings, where the concerned employee would be
  • 29. 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
  • 30. 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 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
  • 31. 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 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
  • 32. 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 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
  • 33. 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 Entire Course FOR MORE CLASSES VISIT www.bus475nerd.com BUS 475 week 1 DQ 1 BUS 475 week 1 DQ 2 BUS 475 Week 1 knowledge Check BUS 475 Week 2 Individual Assignment Business Model and Strategic Plan Part I: Conceptualizing a New Product or Service Division of an Existing Business (2 Papers) BUS 475 Week 2 Knowledge Check BUS 475 Week 2 Team Assignment Value Alignment (StarBucks) BUS 475 week 2 DQ 1 BUS 475 week 2 DQ 2
  • 34. BUS 475 Week 3 Individual Assignment Business Model and Strategic Plan Part II: SWOTT Analysis Paper (2 Papers) BUS 475 Week 3 Team Assignment Functional Area Interrelationships (Kudler Foods) BUS 475 week 3 DQ 1 BUS 475 week 3 DQ 2 BUS 475 Week 4 Knowledge check BUS 475 Week 4 Individual Business Model and Strategic Plan Part III Balanced Scorecard and Communication Plan (2 Papers) BUS 475 Week 4 Team Assignment Communication Plan Outline BUS 475 week 4 DQ 1 BUS 475 week 4 DQ 2 BUS 475 Week 5 Individual Assignment Final Business Model and Strategic Plan BUS 475 week 5 DQ 1 BUS 475 week 5 DQ 2 --------------------------------------------------------------------------- BUS 475 Week 1 DQ 1 FOR MORE CLASSES VISIT www.bus475nerd.com
  • 35. What is strategic management? What are the roles of mission and vision statements in strategic management? Can an organization have a successful strategic plan without effective mission and vision statements? Why or why not? --------------------------------------------------------------------------- BUS 475 Week 1 DQ 2 FOR MORE CLASSES VISIT www.bus475nerd.com Select a small business that you may want to start. What is strategic management and planning? Why would a strategic plan be important to the success of this business? How are the four functions of management relative to creating and implementing a strategic plan? --------------------------------------------------------------------------- BUS 475 Week 1 knowledge Check 1 FOR MORE CLASSES VISIT www.bus475nerd.com 1.Reaching a valid decision is based on the evaluation of arguments. If we know that a valid argument has true premises, then a decision based on the argument______________. 2. Identify the fallacy in the following piano store advertisement: “Pianos are our only business. You’ll get the best deal at the Piano Experts.”
  • 36. 3.Which of the following statements describes creativity correctly? 4.How would you assess the following statement? Consider both the nature of the claim and the source. “Lottery director Mark Michalko said Thursday that allegations that Californians are squandering money they once used for food to buy lottery tickets ‘are just not correct.’. . . California Grocers Association president Don Beaver raised the issue earlier in the week, saying five supermarket chains had complained that grocery sales dropped about 5 percent after lottery tickets went on sale October 3.” —Sacramento Bee 5.The Sarbanes–Oxley Act was created in 2002 to improve and maintain investor confidence. The act includes which of the following: 6.Organizational behavior is examined at three main levels. 7.Employees who have intrinsic work values will be motivated by 8.Research on the five-stage model of group development shows that 9.The extent to which a leader actually does help a group or organization to achieve its goals is best described as 10.When the business environment is __________, an organization is most likely to decentralize authority and empower its employees to make operating decisions. 11.To make your communication more effective 12.Which of the following meeting technologies would be most effective for negotiations, collaborative problem solving, and other complex discussions? 13.Most persuasive messages combine
  • 37. 14.Important design elements to consider when creating slides include which of the following: 15.Which of the following would be the best wording to use on a resume? 16.The __________ approach to ethics maintains that an ethical action is the one that provides the most good or does the least harm. 17.Which type of privacy policy restricts an organization from collecting personal information until the customer specifically authorizes it? 18.Wireless communication includes which of the following: 19.Enterprise resource planning applications seeks to integrate a number of issues, including which of the following: 20.The request for proposal (RFP) is one of the key tools in acquiring information systems and applications. Which of the following statements best characterizes the RFP? 21.The relationship between jurisdiction and venue of state and federal courts 22.Businesses owe customers (business invitees) visiting their stores 23.A legally enforceable contract always requires 24.Regulatory (or administrative) law arises from 25.The purpose of a clear ethical code in a business is --------------------------------------------------------------------------- BUS 475 Week 1 knowledge Check FOR MORE CLASSES VISIT
  • 38. www.bus475nerd.com 1.Reaching a valid decision is based on the evaluation of arguments. If we know that a valid argument has true premises, then a decision based on the argument______________. 2. Identify the fallacy in the following piano store advertisement: “Pianos are our only business. You’ll get the best deal at the Piano Experts.” 3. Which of the following statements describes creativity correctly? 4. How would you assess the following statement? Consider both the nature of the claim and the source. “Lottery director Mark Michalko said Thursday that allegations that Californians are squandering money they once used for food to buy lottery tickets ‘are just not correct.’. . . California Grocers Association president Don Beaver raised the issue earlier in the week, saying five supermarket chains had complained that grocery sales dropped about 5 percent after lottery tickets went on sale October 3.” —Sacramento Bee 5. The Sarbanes–Oxley Act was created in 2002 to improve and maintain investor confidence. The act includes which of the following: 6. Organizational behavior is examined at three main levels. 7. Employees who have intrinsic work values will be motivated by 8. Research on the five-stage model of group development shows that 9. The extent to which a leader actually does help a group or organization to achieve its goals is best described as
  • 39. 10. When the business environment is __________, an organization is most likely to decentralize authority and empower its employees to make operating decisions. 11. To make your communication more effective 12. Which of the following meeting technologies would be most effective for negotiations, collaborative problem solving, and other complex discussions? 13. Most persuasive messages combine 14. Important design elements to consider when creating slides include which of the following: 15. Which of the following would be the best wording to use on a resume? 16. The __________ approach to ethics maintains that an ethical action is the one that provides the most good or does the least harm. 17. Which type of privacy policy restricts an organization from collecting personal information until the customer specifically authorizes it? 18. Wireless communication includes which of the following: 19. Enterprise resource planning applications seeks to integrate a number of issues, including which of the following: 20. The request for proposal (RFP) is one of the key tools in acquiring information systems and applications. Which of the following statements best characterizes the RFP? 21. The relationship between jurisdiction and venue of state and federal courts 22. Businesses owe customers (business invitees) visiting their stores
  • 40. 23. A legally enforceable contract always requires 24. Regulatory (or administrative) law arises from 25. The purpose of a clear ethical code in a business is --------------------------------------------------------------------------- BUS 475 Week 2 DQ 1 FOR MORE CLASSES VISIT www.bus475nerd.com What is a SWOTT analysis? What is its purpose in strategic planning? Must you conduct a SWOTT analysis to have an effective strategic plan? Why or why not? --------------------------------------------------------------------------- BUS 475 Week 2 DQ 2 FOR MORE CLASSES VISIT www.bus475nerd.com What are the key planning factors for competitive success? Provide an example of an organization that has achieved competitive success through planning. Provide an example of an organization that has failed to achieve competitive success as the result of failed planning. ---------------------------------------------------------------------------
  • 41. BUS 475 Week 2 Individual Assignment Business Model and Strategic Plan Part I: Conceptualizing a New Product or Service Division of an Existing Business (2 Papers) FOR MORE CLASSES VISIT www.bus475nerd.com This tutorial contains 2 Papers Business Model and Strategic Planning Outline as a guide to complete sections of your capstone project each week. A final paper is due in Week 5. Cite your resources. Write a 1,400- to 1,750-word paper in which you explain the importance of innovation in your selected business's vision, mission, and values, and determine your business model for this new division. Include the following: Propose a new product or service for the new company division. The division should be customer-focused with an innovative mission statement. Ensure that you are differentiating your product or service. Describe how the division addresses customer needs and achieves competitive advantage. Create a vision and a business model for this new division that clearly demonstrates your decision on what you want your business to become in the future. Explain how the vision, mission, and value of the new division align with the company's mission and vision.
  • 42. Summarize how the vision, mission, and values guide the division's strategic direction. Define your guiding principles and values for your division in the context of culture, social responsibility, and ethics. Format your paper consistent with APA guidelines. Click the Assignment Files tab to submit your assignment --------------------------------------------------------------------------- BUS 475 Week 2 Knowledge Check 1 FOR MORE CLASSES VISIT www.bus475nerd.com 1. Compared with other approaches to business, the marketing concept is distinct in that it 2. A company provides its advertising agency with a statement about a new product to use in designing an advertising campaign, and this statement includes a description of the target market, the product type, the primary benefits of using the product, and how this product is different from, and better than, competitive products. What type of statement is this? 3. The sales analysis of a product revealed that profits were highest when it was initially introduced into the market with a high selling price. However, the price was gradually reduced as it started facing competition as substitutes entered the market. This is an example of a(n) 4. Blending the firm's promotion efforts to convey a complete and consistent message is the goal of
  • 43. 5. According to the concept of social responsibility, a firm has a duty to 6. The principal participants in the financial markets are 7. You just purchased a parcel of land for $10,000. If you expect a 12% annual rate of return on your investment, how much will you sell the land for in 10 years? Note. Due to rounding and method of calculation, your answer might vary slightly. Choose the closest answer. 8. Bull Gator Industries is considering a new assembly line costing $6,000,000. The assembly line will be fully depreciated by the simplified straight line method over its 5-year depreciable life. Operating costs of the new machine are expected to be $1,100,000 per year. The existing assembly line has 5 years remaining before it will be fully depreciated and has a book value of $3,000,000. If sold today the company would receive $2,400,000 for the existing machine. Annual operating costs on the existing machine are $2,100,000 per year. Bull Gator is in the 46 percent marginal tax bracket and has a required rate of return of 12 percent. Calculate the net present value of replacing the existing machine. Note. Due to rounding and method of calculation, your answer might vary slightly. Choose the closest answer. 9. A strong stock market and reasonably good earnings have caused the price of the firm's common stock to increase by 25%. 10. Buying and selling in more than one market to make a riskless profit is called 11. The United States imposes substantial taxes on cigarettes but not on loose tobacco. When the tax on cigarettes went into effect, the demand for home cigarette rolling machines most likely 12. Keynes believed that an increase in savings would · raise aggregate demand by reducing investment
  • 44. 13. Which of the following monetary policies reduces aggregate demand and output? 14. Deficits may be desirable in the short run if they 15. If for a country, the quantity of its currency demanded exceeds the quantity supplied, then there is a 16. Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that 17. Economic efficiency is achieved at a particular output level if 18. A perfectly competitive firm will be profitable if price at the profit- maximizing quantity is above 19. How are goods manufactured in other countries creating jobs in the United States? --------------------------------------------------------------------------- BUS 475 Week 2 Knowledge Check FOR MORE CLASSES VISIT www.bus475nerd.com 1. Compared with other approaches to business, the marketing concept is distinct in that it 2. A company provides its advertising agency with a statement about a new product to use in designing an advertising campaign, and this statement includes a description of the target market, the product type, the primary benefits of using the product, and how this product is
  • 45. different from, and better than, competitive products. What type of statement is this? 3. The sales analysis of a product revealed that profits were highest when it was initially introduced into the market with a high selling price. However, the price was gradually reduced as it started facing competition as substitutes entered the market. This is an example of a(n) 4. Blending the firm's promotion efforts to convey a complete and consistent message is the goal of 5. According to the concept of social responsibility, a firm has a duty to 6. The principal participants in the financial markets are 7. You just purchased a parcel of land for $10,000. If you expect a 12% annual rate of return on your investment, how much will you sell the land for in 10 years? Note. Due to rounding and method of calculation, your answer might vary slightly. Choose the closest answer. 8. Bull Gator Industries is considering a new assembly line costing $6,000,000. The assembly line will be fully depreciated by the simplified straight line method over its 5-year depreciable life. Operating costs of the new machine are expected to be $1,100,000 per year. The existing assembly line has 5 years remaining before it will be fully depreciated and has a book value of $3,000,000. If sold today the company would receive $2,400,000 for the existing machine. Annual operating costs on the existing machine are $2,100,000 per year. Bull Gator is in the 46 percent marginal tax bracket and has a required rate of return of 12 percent. Calculate the net present value of replacing the existing machine. Note. Due to rounding and method of calculation, your answer might vary slightly. Choose the closest answer. 9. A strong stock market and reasonably good earnings have caused the price of the firm's common stock to increase by 25%.
  • 46. 10. Buying and selling in more than one market to make a riskless profit is called 11. The United States imposes substantial taxes on cigarettes but not on loose tobacco. When the tax on cigarettes went into effect, the demand for home cigarette rolling machines most likely 12. Keynes believed that an increase in savings would · raise aggregate demand by reducing investment 13. Which of the following monetary policies reduces aggregate demand and output? 14. Deficits may be desirable in the short run if they 15. If for a country, the quantity of its currency demanded exceeds the quantity supplied, then there is a 16. Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that 17. Economic efficiency is achieved at a particular output level if 18. A perfectly competitive firm will be profitable if price at the profit- maximizing quantity is above 19. How are goods manufactured in other countries creating jobs in the United States? --------------------------------------------------------------------------- BUS 475 Week 2 Team Assignment Value Alignment (StarBucks) FOR MORE CLASSES VISIT
  • 47. www.bus475nerd.com Discuss with your Learning Team an existing organization with which you are familiar that is different than the one you used for the Conceptualizing a Business paper. Write a 700- to 1,050-word paper in which you analyze the individual values and the organization’s values as reflected by the organization’s plans and actions. Include the following in your paper: · Analyze the origin(s) and subsequent evolution of your personal and workplace values. · Explain how your individual values drive your actions and behaviors, and analyze the alignment between your values and actions and behaviors. · Analyze the degree of alignment between the organization’s stated values and the organization’s actual plans and actions. · Explain the differences and analyze the degree of alignment between your values and the organization’s values as reflected by the organization’s plans and actions.
  • 48. Format your paper consistent with APA guidelines. Prepare to discuss this assignment with the class. --------------------------------------------------------------------------- BUS 475 Week 3 DQ 1 FOR MORE CLASSES VISIT www.bus475nerd.com What are strategic objectives? What is the purpose of strategic objectives? What makes an effective strategic objective? What are examples of strategic objectives for you organization or one with which you are familiar? --------------------------------------------------------------------------- BUS 475 Week 3 DQ 2 FOR MORE CLASSES VISIT www.bus475nerd.com What is the difference among strategic, long-term, and short-term objectives? What is the relationship between objectives and goals? What are examples of this relationship? ---------------------------------------------------------------------------
  • 49. BUS 475 Week 3 Individual Assignment Business Model and Strategic Plan Part II: SWOTT Analysis Paper (2 Papers) FOR MORE CLASSES VISIT www.bus475nerd.com This tutorial contains 2 Papers Conduct an internal and external environmental analysis, and a supply chain analysis for your proposed new division and its business model. Create a SWOTT table summarizing your findings. Your environmental analysis should consider, at a minimum, the following factors. For each factor, identify the one primary strength, weakness, opportunity, threat, and trend, and include it in your table. External forces and trends considerations: Legal and regulatory Global Economic Technological Innovation Social Environmental Competitive analysis
  • 50. Internal forces and trends considerations: Strategy Structures Processes and systems Resources Goals Strategic capabilities Culture Technologies Innovations Intellectual property Leadership Write a synopsis of no more than 1,050 words in which you analyze relevant forces and trends from the list above. Your analysis must include the following: Include economic and legal and regulatory forces and trends. Critique how well the organization adapts to change. Analyze and explain the supply chain of the new division of the existing business. Share your plans to develop and leverage core competencies and resources within the supply chain in an effort to make a positive impact on the business model and the various stakeholders. Identify issues and/or opportunities:
  • 51. Identify the major issues and/or opportunities that the company faces based on your analysis. Generate a hypothesis surrounding each issue and research questions to use for conducting analysis. Identify the circumstances surrounding each issue; classify the circumstances; attribute the importance of each classification; and test the accuracy of the importance for each classification. Format your paper consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. --------------------------------------------------------------------------- BUS 475 Week 3 Team Assignment Functional Area Interrelationships (Kudler Foods) FOR MORE CLASSES VISIT www.bus475nerd.com Select one organization of the Virtual Organizations from the student website. Write a 1,400- to 2,100-word paper in which you complete the following: · State the primary reasons for the organization’s existence from an analysis of the mission, vision, values, and goals.
  • 52. · Analyze the reason for the type of organizational structure employed by the organization, and identify the key positions that support that organizational structure. · Identify and explain the steps of the collaboration process among the functional areas that must be employed to achieve organizational goals, and prepare an action plan to implement the collaboration process. · Identify and provide an example of the use of lateral collaboration and vertical collaboration within the organization, and prepare an action plan to use lateral and vertical collaboration. Identify the key stakeholders and their roles needed to achieve the organizational goals, and recommend the collaborative interactions among the key stakeholders to facilitate the organization’s success. --------------------------------------------------------------------------- BUS 475 Week 4 DQ 1 FOR MORE CLASSES VISIT www.bus475nerd.com Why is it important to continuously update the implementation and communication of a strategic plan? Who should be responsible for updating and communicating a strategic plan? Why? ---------------------------------------------------------------------------
  • 53. BUS 475 Week 4 DQ 2 FOR MORE CLASSES VISIT www.bus475nerd.com What things should be taken into consideration in the creation of a roadmap for a strategic plan? What are examples of external and internal change agents? What role do change agents play in the execution of a road map for a strategic plan? --------------------------------------------------------------------------- BUS 475 Week 4 Individual Business Model and Strategic Plan Part III Balanced Scorecard and Communication Plan (2 Papers) FOR MORE CLASSES VISIT www.bus475nerd.com This tutorial contains 2 Papers Identify key trends, assumptions, and risks in the context of your final business model. Develop the strategic objectives for your new division of the existing business in a balanced scorecard format in the context of key trends, assumptions, and risks.The strategic objectives are measures of attaining your vision and mission. As you develop them, consider the vision, mission, and values for your business and the outcomes of your SWOTT analysis and supply chain analysis.
  • 54. Consider the following four quadrants of the balanced scorecard when developing your strategic objectives: Shareholder Value or Financial Perspective, includes strategic objectives in areas such as: Market share Revenues and costs Profitability Competitive position Customer Value Perspective, includes strategic objectives in areas such as: Customer retention or turnover Customer satisfaction Customer value Process or Internal Operations Perspective, includes strategic objectives in areas such as: Measure of process performance Productivity or productivity improvement Operations metrics Impact of change on the organization Learning and Growth (Employee) Perspective, includes strategic objectives in areas such as: Employee satisfaction
  • 55. Employee turnover or retention Level of organizational capability Nature of organizational culture or climate Technological innovation Develop at least three strategic objectives for each of the four balanced scorecard areas identified (Financial, Customer, Process, Learning and Growth). Your objectives should be selected, in part, based on an evaluation of a number of potential alternatives to the issues and/or opportunities identified in the SWOTT Analysis paper and table you completed in Week 3. Base your solutions on a ranking of alternative solutions that includes an identification of potential risks and mitigation plans, and a stakeholder analysis that includes mitigation and contingency strategies. You should also incorporate the ethical implications of your solutions into your selection. For each strategic objective, develop a metric and target using a balanced scorecard format. (For example, a strategic objective in the shareholder or Financial Perspective is to increase market share. A metric to actually measure this strategic objective of market share increase is, "The percentage of increase in market share." The target is the specific number to be achieved in a particular time period. The target for the metric of "Increase market share" could be "Increase market share by 2% for each of the next 3 years" of an increase of 2% per year for 3 years.) Outline a brief communication plan discussing how you will communicate the company's strategic objectives that includes the following: Define the purpose.
  • 56. Define the audience. Identify the channel(s) of communication and why you selected that channel. Write a 1,050- to 1,400-word strategic objectives summary. Include your balanced scorecard and its impact on all stakeholders, and the communication plan. Format paper consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. --------------------------------------------------------------------------- BUS 475 Week 4 Knowledge check 1 FOR MORE CLASSES VISIT www.bus475nerd.com 1. A fast-food restaurant asks customers to evaluate the drive-thru service as good, average, or poor. What level of data measurement is this classification? 2. In order to determine the average amount spent in November on Amazon.com a random sample of 144 Amazon accounts were selected. The sample mean amount spent in November was $250 with a standard deviation of $25. Assuming that the population standard deviation is unknown, what is a 95% confidence interval for the population mean amount spent on Amazon.com in November?
  • 57. 3. A shipment of 20 DVDs has arrived at a video rental store. Based on past experience, the manager knows that 10% of all new DVDs sent to the store have a visible defect. The manager tells you to begin inspecting the new DVDs one at a time at random until you find the first DVD that has a defect. If 10% of the DVDs have a visible defect in the new shipment, what is the probability that the first DVD that has a defect is the 3rd one that you inspect? (Round your answer to 3 decimal places.) 4. An insurance agent has selected a sample of drivers that she insures whose ages are in the range from 16–42 years old. For each driver, she records the age of the driver and the dollar amount of claims that the driver filed in the previous 12 months. A scatterplot showing the dollar amount of claims as the response variable and the age as the predictor shows a linear regression line with: y^=3710 – 55.4x. If the age of a driver increases by 1 year, by how much and in what direction would the dollar amount of claims be predicted to change for the driver? 5. A researcher claims that the proportion of employees who play video games in the workplace is higher than it was 10 years ago. You might be willing to reject the null hypothesis of no change with a = 0.10 or larger. The p-value for this test is 0.15. In this case the researcher should 6. The general plan of major actions through which a firm intends to achieve is long-term objectives is called its 7. How valuable a low-cost leader's cost advantage is depends on 8. Which of the following represent marketing capabilities at the growth stage of industry evolution? 9. __________ is an organization structured around the idea of sharing knowledge, seeking knowledge, and creating opportunities to create new knowledge. 10. Which of the following types of strategic control has a low degree of formalization?
  • 58. 11. Investors and creditors are particularly interested in this financial statement because it tells them what is happening to the company’s most important resource? 12. The cash basis of accounting is prohibited under GAAP for the following reason: 13. Use the following data to determine the total dollar amount of assets to be classified as property, plant, and equipment. Eddy Auto Supplies Balance Sheet December 31, 2014 Cash $84,000 Accounts payable $110,000 Accounts receivable $80,000 Salaries and wages payable $20,000 Inventory $140,000 Mortgage payable $180,000 Prepaid insurance $60,000 Total liabilities $310,000 Stock investments $170,000 Land $190,000 Buildings $226,000 Common stock $240,000 Less: Accumulated Retained earnings $500,000 depreciation ($40,000) $186,000 Total stockholders’ equity $740,000 Trademarks $140,000 Total liabilities and Total assets $1,050,000 Stockholders’ equity $1,050,000 14. The manager of Weiser is given a bonus based on net income before taxes. The net income after taxes is $35,700 for FIFO and $29,400 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO? 15. The Sarbanes–Oxley Act of 2002 requires publicly traded U.S. companies to take the following actions to defect and prevent fraud: · Adopt accrual basis of accounting, maintain an adequate system of internal controls, and create penalties for noncompliance · Maintain an adequate system of internal controls, provide additional training to managers and accountants regarding internal controls, and publish internal controls on the company’s public website 16. On July 1, 2014, Linden Company purchased the copyright to Norman Computer Tutorials for $140,000. It is estimated that the
  • 59. copyright will have a useful life of 5 years. The amount of amortization expense recognized for the year 2014 would be 17.ABC Corp. receives a 7-month interest-bearing promissory note in the amount of $360,000 on February 1. The interest rate is 15%. What is the total interest expense ABC Corp will record assuming ABC makes all of its payments? 18. Logan Corporation issues 50,000 shares of $50 par value preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to cash for $3,000,000 and a credit or credits to · preferred stock of $3,000,000 19. Which of the following tools of analysis is used to evaluate financial statement information by expressing financial statement data as a percentage over a base amount? 20.The Sarbanes–Oxley Act of 2002 requires publically-traded U.S. companies to provide great internal controls. The five primary components of an internal control system include: a control environment, risk assessment, information and communication, monitoring, and --------------------------------------------------------------------------- BUS 475 Week 4 Knowledge check FOR MORE CLASSES VISIT www.bus475nerd.com 1. A fast-food restaurant asks customers to evaluate the drive-thru service as good, average, or poor. What level of data measurement is this classification?
  • 60. 2. In order to determine the average amount spent in November on Amazon.com a random sample of 144 Amazon accounts were selected. The sample mean amount spent in November was $250 with a standard deviation of $25. Assuming that the population standard deviation is unknown, what is a 95% confidence interval for the population mean amount spent on Amazon.com in November? 3. A shipment of 20 DVDs has arrived at a video rental store. Based on past experience, the manager knows that 10% of all new DVDs sent to the store have a visible defect. The manager tells you to begin inspecting the new DVDs one at a time at random until you find the first DVD that has a defect. If 10% of the DVDs have a visible defect in the new shipment, what is the probability that the first DVD that has a defect is the 3rd one that you inspect? (Round your answer to 3 decimal places.) 4. An insurance agent has selected a sample of drivers that she insures whose ages are in the range from 16–42 years old. For each driver, she records the age of the driver and the dollar amount of claims that the driver filed in the previous 12 months. A scatterplot showing the dollar amount of claims as the response variable and the age as the predictor shows a linear regression line with: y^=3710 – 55.4x. If the age of a driver increases by 1 year, by how much and in what direction would the dollar amount of claims be predicted to change for the driver? 5. A researcher claims that the proportion of employees who play video games in the workplace is higher than it was 10 years ago. You might be willing to reject the null hypothesis of no change with a = 0.10 or larger. The p-value for this test is 0.15. In this case the researcher should 6. The general plan of major actions through which a firm intends to achieve is long-term objectives is called its 7. How valuable a low-cost leader's cost advantage is depends on 8. Which of the following represent marketing capabilities at the growth stage of industry evolution?
  • 61. 9. __________ is an organization structured around the idea of sharing knowledge, seeking knowledge, and creating opportunities to create new knowledge. 10. Which of the following types of strategic control has a low degree of formalization? 11. Investors and creditors are particularly interested in this financial statement because it tells them what is happening to the company’s most important resource? 12. The cash basis of accounting is prohibited under GAAP for the following reason: 13. Use the following data to determine the total dollar amount of assets to be classified as property, plant, and equipment. Eddy Auto Supplies Balance Sheet December 31, 2014 Cash $84,000 Accounts payable $110,000 Accounts receivable $80,000 Salaries and wages payable $20,000 Inventory $140,000 Mortgage payable $180,000 Prepaid insurance $60,000 Total liabilities $310,000 Stock investments $170,000 Land $190,000 Buildings $226,000 Common stock $240,000 Less: Accumulated Retained earnings $500,000 depreciation ($40,000) $186,000 Total stockholders’ equity $740,000 Trademarks $140,000 Total liabilities and Total assets $1,050,000 Stockholders’ equity $1,050,000 14. The manager of Weiser is given a bonus based on net income before taxes. The net income after taxes is $35,700 for FIFO and $29,400 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO? 15. The Sarbanes–Oxley Act of 2002 requires publicly traded U.S. companies to take the following actions to defect and prevent fraud: · Adopt accrual basis of accounting, maintain an adequate system of internal controls, and create penalties for noncompliance
  • 62. · Maintain an adequate system of internal controls, provide additional training to managers and accountants regarding internal controls, and publish internal controls on the company’s public website 16. On July 1, 2014, Linden Company purchased the copyright to Norman Computer Tutorials for $140,000. It is estimated that the copyright will have a useful life of 5 years. The amount of amortization expense recognized for the year 2014 would be 17.ABC Corp. receives a 7-month interest-bearing promissory note in the amount of $360,000 on February 1. The interest rate is 15%. What is the total interest expense ABC Corp will record assuming ABC makes all of its payments? 18. Logan Corporation issues 50,000 shares of $50 par value preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to cash for $3,000,000 and a credit or credits to · preferred stock of $3,000,000 19. Which of the following tools of analysis is used to evaluate financial statement information by expressing financial statement data as a percentage over a base amount? 20.The Sarbanes–Oxley Act of 2002 requires publically-traded U.S. companies to provide great internal controls. The five primary components of an internal control system include: a control environment, risk assessment, information and communication, monitoring, and_. --------------------------------------------------------------------------- BUS 475 Week 4 Team Assignment Communication Plan Outline FOR MORE CLASSES VISIT www.bus475nerd.com
  • 63. Develop a generic communications plan and template. This template will be used to develop a communication plan for your Final Strategic Plan, due in Week Five. --------------------------------------------------------------------------- BUS 475 Week 5 DQ 1 FOR MORE CLASSES VISIT www.bus475nerd.com Why is it necessary to monitor and control strategic plans? Who should be responsible for monitoring and controlling strategic plans? Why? What are the pitfalls of failing to monitor and control strategic plans? --------------------------------------------------------------------------- BUS 475 Week 5 DQ 2 FOR MORE CLASSES VISIT www.bus475nerd.com As an employee of an organization, what role do you play in the strategic planning process? What role do you play in the implementation process? What role do you play in the monitoring and controlling process? ---------------------------------------------------------------------------