BUS 475 Capstone Final Exam Part 1 New 2018 Check this A+ tutorial guideline at http://www.assignmentcloud.com/BUS475/BUS-475-Capstone-Final-Exam-Part-1-New-2017 For more classes visit http://www.assignmentcloud.com

1. BUS 475 Capstone Final Exam Part 1 New 2018
Check this A+ tutorial guideline at
http://www.assignmentcloud.com/BUS475/BUS-475-Capstone-Final-Exam-Part-
1-New-2017
For more classes visit
http://www.assignmentcloud.com
BUS 475 Capstone Final ExaminationPart 1
From the following informationcalculate the net increase incash.
• $88,780
• $18,620
• $13,220
• $23,380
Irvin’s Ice Creams a popular chain of ice cream parlors locatedonly in the United
States is looking for opportunities togrowits business. Whichof the following
suggestions, if providedby the company’s marketing manager, would present
the least amount of risk tothe firm?
• Leveraging the firm’s brandvalue by selling children’stoys
• Increasing sales by increasing the number of stores inthe UnitedStates
• Selling Irvin’s brandedclothing ina newmarket
• Selling its current productsinan attractive newmarket
Claudia is a team leadin an organization. One day at work a teammember 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 treatedunfairly at work and that his
colleagues oftenridicule himbecause of his ethnicity. He goes ontosay that his
disturbedstate of mindhas causeda dip in the productivity andquality of his
work. Claudia does not interrupt himwhen he is speaking and encourages him
to talk openly. She alsolets himknow that she understands his situationand

2. that his feelings are valid. Inthis scenario, Claudiais primarily engagedin
__________.
• selective listening
• passive listening
• empathic listening
• defensive listening
Calculate the net working capital from the informationgivenbelow. The figures
are in millions of dollars.
• $(140)
• $520
• $610
• $1,030
TwissDataCorp. is an electronics firm basedinDamiyathat manufactures
motherboards. Because of a rapid growthin the personal computing industry,
TwissDataCorp. decides toproduce personal desktops andlaptops insteadof
motherboards. By doing so, which type of market-product strategy has
TwissDataCorp. applied?
• Product development
• Diversification
• Market penetration
• Market development
Zuckain Corp. has issueda 10-year couponbond. The bond is issuedat an
annual coupon rate of 14%. The face value of the bond is $1,500, andthe bond
is currently trading at $1,232.56. Calculate the bond’s yieldtomaturity.
• 64%
• 32%
• 25%
• 95%
The current price of LateraCorporation’s common stock is $45 per share. The
company expects topay a dividendof $3.30 per share during the next year. The
expectedgrowthrate of the stock is 12%. Calculate the cost of equity using the
constant-growthmodel.
• 33%
• 60%

3. • 64%
• 33%
General Pharmacy’s stock has a betaof 1.8 and an expectedreturnof 14%, and
Sicoras Corp.’s stock has a beta of 1.5 and an expectedreturnof 16.2%.
Assuming capital-asset pricing model holds, calculate the returnonthe market
portfolio.
• 3%
• 2%
• 6%
• 9%
In 2006, Dexel ElectronicsInc. introducedaudiosystems inthe market for
electronic gadgets. Becauseof an increase in sales volume as well as a growing
proportionof repeat purchasers, the company has now upgradedthe old
versionof audio systems by introducing newfeatures. Giventhis information, in
which stage of the product life cycle does Dexel Electronicslie?
• Growth
• Decline
• Introduction
• Maturity
FarmFreshInc. partners withmultiple retailers tosell its organic products. If
stocks fall belowa product’s threshold, the retail managers raise purchase
orders toFarmFresh. It takes twodays for FarmFreshtoprocess the orders and
dispatchthe products. The process proves tobe ineffectivewhenthe retail
stores donot have the stock tomeet a sudden increase indemand. How can
supply chain management (SCM) systems solve this problemandmake the
process more efficient?
• The retail stores cantrack the status of a shipment.
• Managers fromthe retail stores canraise purchase orders over telephone.
• FarmFreshcanhave real-time access tosales information.
• Customers cantrack the status of a product delivery.
LaBelle, afamous cosmetic brand, introduces anew skincleanser. Initially, the
product does extremely well andreaps huge profits for the company. After
using the product for few months, consumers having acne complainof rashes
and allergies. Anexternal chemical agency accuses that the company useda
harsh chemical that causes allergiestopeople withacne, and it did not include
it on the ingredientslist displayedonthe product’s label. These harshchemicals
did not cause allergies topeople withnormal skin. Whenenquired, the

4. company’s CEO confesses that the products wouldhave not done so well if they
had listedthe chemical. The company can be charged with__________.
• battery
• fraud
• defamation
• Assault
RicaltaInc. earns a total of $500,000 beforeinterest andtaxes. Its total debt is
$1,110,000 (costing 5%). It has 150,000shares of commonstock at $5 per share.
The firmis considering reducing its debt by $450,000by issuing anadditional
90,000 shares of commonstock. The firm is in the 35 percent tax bracket. Its
earnings before interest andtaxes will remainthe same as the new capital
structure will not impact the firm’s operations. Whichof the following will be a
consequence of the change in Ricalta’s capital structure?
• The firm’s earnings before taxes (EBT) will remainunchanged.
• The firm’s net income will decrease by $14,625.
• The firm’s earnings per share (EPS) will be reducedby $0.66.
• The firm’s net income will increase by $10,625.
The capital structure of WilkenCorporationis givenbelow.
Calculate the weightedaverage cost of capital (WACC).
Additional details are as follows:
• 35%
• 65%
• 75%
• 45%
Mirabel Inc. has recently venturedintothe home cleaning supplies market with
its very own floor cleaner, Flofix, whichdoes not contain any harmful chemicals
such as phenol. The company has usedaggressive marketing strategies and
innovative advertising campaigns topromote the product. The company’s
revenue analysis shows that the sales for the product are increasing steadily.
However, whenthe market survey teamof the company surveyeda large
number of consumers inthe target market, the consumers mentionedthat they
had not switchedover tothe new brand of floor cleaner. Whichof the

5. following, if true, best explains howthe sales for the company went up in spite
of consumers not purchasing the product?
• People prefer touse products that they are familiar withrather than trying
out new products.
• Organizational buyers purchase newproducts before consumers do.
• Consumers sometimeswait tosee howwell a product performs inthe market
before purchasing it.
• Mirabel Inc. didnot invest equal amounts of money on its different
advertising campaigns.
A popular hypermarket chaincame under criticismfor failing toprotect the e-
mail addresses andcredit carddetails of 50,000 customers. CloudComInc., a
web servicescompany, identifiedthat the lapse was because of a worm that
had breachedthe hypermarket’s internal servers throughanunauthorizede-
mail, and that the anti-malware systemfailedtocatchthe worm. Which of the
following actions shouldCloudCom take to restrict suchmalwares fromentering
the hypermarket’s internal network?
• Install a firewall
• Use a virtual private network toconnect its users
• Whitelistthe malware
• Update the anti-malware system’s database
Robert, an ardent blogger, is approachedby 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 wouldbe unethical. Whichof
the following decisions will be consideredanethical lapse?
• To write positive reviewsabout the product
• To turndown the company’s offer
• To write a reviewafter testing the product
• To inform people about the products’ allergic reactions
After aseries of thefts inan organization, the management is considering
whether or not toinstall cameras inside the office. The management is torn
betweenviolating the privacy of employees andpreventing future thefts from
taking place. This scenarioillustrates an__________.
• ethical dilemma

6. • ethical lapse
• absence of codes of professionalism
• absence of codes of ethics
Kwalkon Computing releasedanewsoftware update for their calendar app. The
update synchronizes bothpersonal andbusiness calendars seamlessly. The
update has all the relevant bug fixes and promises tomake the app work faster.
Since there have beenno recent complaints about the software, the update
must have solvedall the customers’ issues. Whichof the following questions
would be most relevant inevaluating the argument?
• Has enough time passedafter the release of the update?
• What is the memory requiredinorder to install the update?
• What is the pace at which the updatedapp will performits functions?
• Has Kwalkon releasedany updates for their other software applications?
Hailey’s FoodInc. sells fishsticks at $3.00 abox. The government passes alaw
requiring sellers of foodproducts 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 totrade down to compensate for the tax. Whichof the
following is a likely outcome of the company’s decision?
• The company will increase the price of one box of fishsticks to$3.50 while
also increasing the package size.
• The company will sell fishsticks worth$2.50at $3.00 per box.
• The company will increase the price andquantity of fishsticks.
• The company will continue tosell the same quantity of fishsticks at the same
price.
Michael deposits $35,000 today inhis bank account. Calculate the approximate
amount he will have at the end of six years if interestis 10% per year andis
compounded semiannually.
$115,560
$70,060
$50,180
$62,860
Irvin’s Ice Creams, a popular chain of ice cream parlors present only inthe
UnitedStates, is looking for opportunities togrowits business. If the firm

7. conducts a SWOT analysis of its performance, whichof the following wouldbe
categorizedas athreat?
• The growing demand for ice creams in international markets
• The entry of international ice creambrands in the U.S. market
• The firm’s inability toscale up in terms of revenue
• The firm’s positive brandvalue among customers
The intensive 45-day training programfor new employees at ZedInc. requires
trainees totake several tests that trainers at ZedInc. have to grade. Recently,
there has beena 30% increase inhiring. Withthe present number of trainers, it
is not possible tofinishgrading all the tests intime.
HR manager:The training teamshould transfer all the tests for the traineesto
software that will grade themautomatically. Our hiring budget will not allow
the hiring of additional people to manage the increasednumber of trainees.
Using auto-grading software will not require any funds from our hiring budget.
Which of the following is assumedby the HR manager?
• Using auto-grading software will allowZedInc. to support all of its potential
training needs inthe future.
• Trainees will needashorter durationof time to answer the tests after the
auto-grading software is implemented.
• ZedInc. will not needto hire additional people tooperate the auto-grading
software.
• The duration of the training cannot be reducedwithout negatively affecting
the quality of the training.
HushSports Inc., sellers of sportswear, transitionedfrombeing just a brick-and-
mortar store toan online marketplace for sports goods. HushSports still relied
on customers tocall the store for feedbacks or complaints. To speedup the
process, the company updated its Website withoptions for the customers to
review the products they purchased. Positivereviews attractedmore
customers, andnegative reviewshelpedthe company improve its products.
Which of the following strategies has HushSports includedinits business
process?
• Crowdsourcing
• Cooperative advertising

8. • Blogging
• Conversational marketing
A shift inthe demand curve for pretzels increases the price of pretzelsfrom
$1.25 to$1.75 andits quantity demanded from 30 millionto35 million. The
price elasticity of demand for pretzels is _____.
5 millionpretzels per dollar
2.32
$1.50 per pretzel
0.46
Dupon Inc. is a leading manufacturer of handheldgame consoles. Each console
manufacturedby the firm has a different game. Althoughthe videogame
industry faceda sharp decline indemand withthe introductionof mobile
games, Dupon still holds a significant market share for handheldgames
compared toits competitors. Tohold the market share, Dupon provides
discounts tocustomers purchasing more thanone console. Whichof the
following stages of the product life cycle is Dupon’s products going through?
• The decline stage
• The growth stage
• The maturity stage
• The introductionstage
LaBelle, afamous cosmetic brand, introduces anew skincleanser. The company
pays bloggers towrite positivereviews about the product. The consumers who
follow these blogs assume that the bloggers are sharing their personal
experiences anddecide totry the product. They are unaware that the blogs are
part of a marketing campaign. After afew days of using the product, they
complain of rashes and allergies. The bloggers canbe chargedwith__________.
• assault
• negligence
• battery
• Defamation
Mark is expectedtoreceive $950 at the endof two years. Calculate the present
value of this amount if the discount rate is 6%.
• $1690.99
• $896.23

9. • $845.50
• $1792.45
Marketers at Cream& FreshIce Creams update the company’s web site and
online journals regularly withinformationabout new ice creams. Readers who
are interestedinthe articles updatedonthe company’s web site and online
journals share the links withtheir friends whofurther share it withmore
people. Some readers try the ice creams and add their owncomments to the
web site andonline journals. Which of the following strategies is the company
using to promote its products?
• Telemarketing
• Wholesaling
• Stealthmarketing
• Blogging
Managers at Hush Sports Inc., leading manufacturers of sports apparel, are
contemplating manufacturing high-endmaple baseball bats. To understandthe
existing demandfor the product, the marketing managers decide toset an
online campaign, promoting the product through blogs, videos, andinteractive
forums. Which of the following approaches should the company adapt in its
campaign?
• Posting messages that the company wouldnot prefer toconvey to an
audience face-to-face
• Replying tothe consumer queries about the advantages of using high-end
maple baseball bats
• Restricting the consumers fromposting comments onthe company’s Web site
• Withholding informationthat wouldcause potential concernover the
product’s quality
Sophie owns SugarCreambakery that produces 20 pastries inaday. The price of
one pastry is $12. If she hires another worker, she will be able toproduce 24
pastries ina day. Assuming that she operates ina competitive market andaims
to maximize her profits, she decides not tohire the additional worker. Whichof
the following explains why Sophie did not hire the additional worker?
• The cost of hiring the additional worker was greater thanthe value of
producing additional pastries.

10. • The cost of hiring the additional worker was less thanthe average product of
the additional worker.
• The cost of hiring the additional worker was less thanthe 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, andits gross profit is
$1,500,000. The company’s average inventories are $595,000. Its average
accounts receivable is $750,000 andaverage accounts payable is $640,000. From
this information, calculate the company’s cashcycle. (Round the answer toone
decimal.)
50.1 days
199.5 days
36.8 days
183.5 days
Sam’s stores, apopular retail store, uses barcode scanners toscaneachproduct
that it sells. The datageneratedfromthe scanners are savedin a database. The
database is updatedevery time a product is scannedand sold. This computer-
basedinformationsystemhelps managers access andanalyze sales data. Which
of the following systems is the store using for its business?
Transactionprocessing system
Supply chainmanagement system
Expert system
Electronic commerce system
ColneithCorp. is a pharmaceutical firmthat mainly produces drugs for
Alzheimer’s disease. The Medical Associationof Zachary Islands conducteda
study on the effectiveness of the firm’s drugs and found that multiple dosages
of drugs were fatal. This discovery wouldmost likely leadto:
• short-runprofits for the firm.
• a decline inthe productionof the drug.
• an increase the productionof the drug.
• the exit of the firm from the market.
Dupon Inc., a leading manufacturer of handheld game consoles, decidestoenter
the global marketplace. It decides tosell its products directly ina foreign
country. The foreigngovernment denies permissiontothe company on the
grounds of protecting domestic manufacturers. However, the government is

11. willing tochange its decisionif the company contributes tolocal employment.
Which of the following strategies of entering the foreignmarket will present the
least risk tothe company while also meeting the government’scondition?
• Direct exporting
• Joint venture
• Direct investment
• Contract assembly
Which of the following alternativeswill give the lowest present value?
• Receiving $650 at the endof three years at an interest rate of 10%
compounded annually
• Receiving $500 at the endof three years at an interest rate of 11%
compounded annually
• Receiving $450 at the endof twoyears at an interestrate of 9% compounded
annually
• Receiving $550 at the endof twoyears at an interestrate 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 endof 2016, the company’s stock is pricedat $39.50.
Calculate the percentage returnfor holding the company’s stock during the year
2016. (Roundthe answer toone decimal place.)
• 8%
• 5%
• 6%
• 4%
Rodriquez works as a scriptwriter inan advertising agency. He has been
assignedthe task of developing ascript for a televisioncommercial. He prepares
a rough draft of the script and submits it tohis manager, Carl. Carl reads the
script but derives adifferent meaning fromit than what Rodriquez intended.
According tothe basic communicationmodel, which of the following will be the
next step?
• Carl will refuse toprovide feedback toRodriquez.
• Carl will respondwithhis interpretationof the script.
• Rodriquez will be askedtonarrate his script toan audience.

12. • Rodriquez will choose acommunicationchannel to transmit his message.
The owners of Brizzels’ FoodTruck sendlive notifications totheir customers
when their truck is close tothe customers’ locations. Their strategy was in
response toa customer’s blog post about having to wait for long hours till the
truck arrives. Whichof the following strategies does this scenarioillustrate?
• Social commerce
• Social intelligence
• Social publishing
• Social analytics
Managing Director:Our business has expandedover the past couple of years.
The profit margin and revenue earnedhave bothgone up. On careful analysis of
our client base, we have found that all of our clients belong tothe same culture
as us. They also hold ethical values that are similar toours. Basedon this
finding, it would be best if our company stops training our employees on
cultural sensitivity andinsteadgives our employees specializedtraining in
market researchanalysis.
The Managing Director’s argument is flawedbecause it:
• disregards the influencethat atraining on cultural sensitivity couldhave on
the company’s profit margin.
• fails toconsider that the suppliers for the company might belong to a different
culture thanthe clients.
• takes for grantedthe continuedincrease inrevenue that the company will
experience.
• assumes that training inmarket researchanalysis is less expensive than
training incultural sensitivity.
Calculate the cost of preferredstock fromthe informationgivenbelow:
• 73%
• 27%
• 45%
• 98%

13. When Ronike Ltd. decidedtochange its logo, it encouragedits employees toget
involvedinthe decision-making process. Employees were askedtoengage in
brainstorming sessions by forming groups and working together inteams.
Which of the following is a likely outcome of their teamwork?
• Increaseddiversity of views among teammembers will helpimprove decision
making.
• The dangers of groupthink will be reduced.
• Team members are less likely tosupport the final decisionregarding the
change inlogo.
• Team members who have hidden agendas will be automatically filteredand
removed.
Harry is receiving aloan of $3,000 fromhis friendtopay off some outstanding
bills. The loan is structuredinsucha manner that the interest rate is 6% for the
first year, after whichthe interest rate increases by 2% per year until the loan is
paid. Calculate the amount that Harry will have to pay his friendif he waits for a
periodof four years topay off the loan. (Round the answer toone decimal
place.)
• $4,231.20
• $4,005.50
• $3,777.80
• $2,127.10
Five years ago, Rigatani Corp. introducedits newenergy drink, Energize.
According torecent market surveys, the product is inits decline stage. At the
same time Energize was introduced, Panne Inc. introducedWhite Unicorn,
another new energy drink. Therefore, White Unicornmust alsobe in its decline
stage now.
Which of the following is an assumptionon which the conclusionis based?
• Market surveys are not areliable methodtodetermine the stages ina
product’s life cycle.
• Consumers have realizedthat the presence of caffeine inenergy drinks is
detrimental totheir health.
• Bothproducts were not well receivedinthe market.
• White Unicorndid not spendmore time in the maturity stage thanEnergize
did.

14. RosaMaria attends aninterviewfor a sales manager positionat Pixxels Inc. As
part of the interviewprocess, she is askedtoreveal personal information. The
company gets Rosa’s consent toshare the informationwitha security company
for background verification. Whichof the following actions, if takenby the
security company, will be unethical?
• Contacting Rosa’s previous employerfor verification
• Selling Rosa’s personal informationtoathirdparty
• Requesting for additional information
• Providing Pixxels Inc. reports onRosa’s online behavior
The government of Seroniais deeply concernedabout the rate of obesity inthe
country. It has frameda policy that requires foodand beverage manufacturers
to be taxedaccording tothe sugar and fat content intheir products. This will
make high-sugar and high-fat products more expensive for consumers. The
government believes that this policy will surely benefitthe healthof Seronian
citizens.
Which of the following statements, if true, wouldundermine the government’s
argument?
• The policy is not applicable tofood products that are not manufacturedwithin
Seronia.
• Recent campaigns done by nutritionists have increasedconsumer awareness
about the adverse effects of a high-calorie diet.
• The Seroniangovernment’s expenditure onproviding healthcare toits citizens
has steadily increasedover the last tenyears.
• Consumers tendtodecrease the consumptionof some healthy food products
to afford the prices of high-sugar and high-fat products, whichare tastier.
Marketing headof Tosel Inc.: Our company has beenusing an advanced CRM
platform, Inito, which is popular among businesses for its sophisticated
functionality. Initoallows us to store customers’ psychographic dataas well as
their recent shopping behavior. However, since we began using Inito, we have
not beenable to generate asignificant greater number of leads. Clearly then,
using CRM software does not help ingenerating any business.
Which of the following statements, if true, wouldweakenthe argument above?

15. • It is difficult tocreate a successful marketing strategy for acustomer base that
greatly varies indemographic and psychographic factors.
• Initois the most commonly usedCRM platform.
• Tosel has integratedInitointothe other informationsystems usedby the
company.
• Tosel has not investedthe resources requiredtomaintainits database of
customers’ psychographic dataand shopping behavior.
Cream & FreshIce Creams pays bloggers towrite positive reviews about its ice
creams. Readers whoare interested inthe product readthese reviews and
share the link with their friends whofurther share the reviewswithmore
people. Some readers try the ice creams and add their owncomments to the
blog. Whichof the following strategies is the company using topromote its
products?
• Stealthmarketing
• Wholesaling
• Online word-of-mouthmarketing
• Telemarketing
In 2005, Susanapurchaseda 7-year zerocoupon bond for $967.23. The face
value of the bond was $1,200. Calculate the capital gainonthis bond in 2006.
• $42.56