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Wave Inc. is a telecommunications company which wants to get involved in e-commerce. It has to Decide if they want a business to business of business to consumer strategy and a business plan needs to be done for each opportunity as given by Wave as the strategic planner which then needs to be presented to the top management. The answer to which one of the following questions becomes necessary to know prior to kick starting your plan? I. What are the company's core competencies? II. What is the Potential market size III. Impact on Revenue Estimates A) I B) II C) III (D) Does the company have e-commerce capabilities? - ANSWER (A) What are the company's core competencies?
If you were the holder of a call option (having cost you $2) on some stock with an exercise price of $20, it would be best for you to exercise your option when the market price is at (A) $ (B) $ (C) $ (D) $24 - ANSWER (D) $
Increased globalization and technological change, especially in telecommunications, make it possible for more organizations to use which of the following forms of organizational structure? (A) Functional (B) Matrix (C) Network (D) Mechanistic - ANSWER (C) Network
A new local Super Store publicly announced that when more than three people are standing in line at cash registers, additional checkout-lines will be opened. After the announcement, customers quickly noticed that the additional lines were not opened until six or seven people were standing in line. This reflects a gap between (A) customer expectation and management perception of customer expectation (B) management perception of customer expectation and service quality specifications (C) customer expectation and internal management communication (D) actual service delivery and how service quality was communicated - ANSWER (D) actual service delivery and how service quality was communicated
All of the following can be considered in the evaluation of a business unit EXCEPT (A) wages paid to labor (B) projected annual revenues of competitors (C) the cost of materials used in the production process (D) the price at which goods produced are sold - ANSWER (B) projected annual revenues of competitors
The sales division of a corporation is considering an internal product transfer because of excess demand. What is the lowest acceptable transfer price for the product? (A) The amount that the company would have to pay to acquire a similar product (B) The variable cost of producing a unit of product
(A) Customers' subjective perceptions of the reliability of the product when in use (B) The conformance of the finished product to agreed-to product specifications (C) Objective, third-party tests of the performance of the product (D) Warranty repair histories of the finished product - ANSWER (B) The conformance of the finished product to agreed-to product specifications
The common stock of ABC, Inc. currently has a market price of $52 per share. Dividends have been $5 a share for several years and are not expected to change. The dividend yield of the stock of comparable companies is 10%. Which recommendation would you make regarding ABC, Inc. stock? (A) Purchase at $52 per share because that is a fair price. (B) Buy at $52 a share because the dividend yield will be 10.1% (C) Do not buy, because the dividend yield will be only 2% (D) Do not buy for more than $50 a share. -ANSWER (D) Do not buy for more than $50 a share.
Which of the following entities is most likely to employ project financing? A) A small start-up B) A financial services firm with an extensive client base C) A large consumer goods company D) A large public utility involved in infrastructure development - ANSWER (D) A large public utility involved in infrastructure development
After a very laborious recruitment process to select the best qualified candidates, over a third of the company's new hires quit in the first month on the job. Which of the following best explains this scenario? (A) The training process by which the new hires were prepared for the tasks assigned to them was inadequate. (B) The health benefits offered by the company were not competitive with those of the
rest of the industry. (C) The starting salary for the new hires was not competitive with that of the rest of the industry. (D) The new hires lacked the basic skills to learn the job. ANSWER (A) The training process to prepare the new hires for their assigned tasks was not adequate.
Prosco Ltd. uses a process cost system. Units are inspected at the 50 percent point of the process. Any defective units are removed from the process, and their cost ($4.50) is absorbed by the good units. Prosco has recently been approached by a firm wishing to buy the defective units for a special use. The firm would require Prosco to modify the defective units at a unit cost of $2.00. If Prosco sells the defective units to the firm for $5.00 each, how would Prosco's reported income be affected? (A) It would decrease by $4.50 per unit sold. (B) It would decrease by $1.50 per unit sold. (C) It would increase by $3.00 per unit sold. (D) It would increase by $5.00 per unit sold. - ANSWER (C) It would increase by $3. per unit sold.
Some companies have little, if any, net income or earnings, yet they seem to have all the money they need for capital expenditures. Which of the following best describes how such companies operate? (A) They have good cash flows. (B) They lease capital equipment that does not show up on balance sheets. (C) They have accounts with many different banks. (D) They issue warrants to their officers. - ANSWER (A) They have good cash flows.
The Sintar Corporation has just announced that it will pay $1.10 per share in dividends to its stockholders in the current quarter. The prior quarter's dividend was $1.00 per share. The announcement indicates which of the following? (A) Management is sending a signal that it expects the economy to expand.
(C) Gross profit (D) Gain on sale of delivery truck - ANSWER (A) Discontinued operations
If it is not possible to alter the political risk levels in overseas markets for a multinational firm, which of the following strategies is most likely to offset potential losses? (A) Control the distribution (B) Utilize currency futures contracts A) Acquire competitors B) Buy products locally C) Finance debt locally D) Maintain control of key inputs -ANSWER (C) Finance debt local Blessed Bundles is a regional clicks-and-mortar retail chain that sells maternity and baby products. It uses data from past purchases to study customers' product preferences and it uses server tracking logs to study customers' online shopping behaviour. Which of the following correctly describes the two types of market research data the company is using? Past Purchases/Server Tracking Logs (A) Transactional/Clickstream (B) Clickstream/Transactional (C) Private/Public (D) Public/Private - ANSWER (A) Transactional/Clickstream
Strategic Marketing - ANSWER Identification of one or more sustainable competitive advantages a firm has in the markets it serves (or intends to serve), and allocation of resources to exploit them. Read more: http://www.businessdictionary.com/definition/strategic-marketing.html Strategic Marketing: metrics and control mechanisms - ANSWER Customer feedback; target market sales; budgeting, market share
/http://smallbusiness.chron.com/examples-controls-marketing-plan-11575.html
Strategic Marketing: environment scanning and marketing planning - ANSWER environment scanning: Careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans. In comparison, surveillance is confined to a specific objective or a narrow sector. // marketing planning:
http://managementstudyguide.com/environmental-scanning.htm / http://study.com/academy/lesson/environmental-scanning-in-marketing-definition-exam ples-methods.html / http://smallbusiness.chron.com/marketing-strategy-planning-628.html
Strategic Marketing: Innovation - ANSWER
Buyer Behavior - ANSWER
Buyer Behavior: consumer and business purchasing processes - ANSWER http://smallbusiness.chron.com/differences-between-consumer-buying-business-buying -decision-process-20397.html
Buyer Behavior: factors influencing consumer and business purchasing - ANSWER https://www.educba.com/4-factors-influencing-consumer-behaviour/
Buyer Behavior: segmentation - ANSWER https://www.tutorialspoint.com/consumer_behavior/consumer_behavior_market_segme ntation.htm Market Research - ANSWER Market Research: competitive intelligence - ANSWER Market Research: research process, concepts, and tools - ANSWER Market Research: managerial decision making - ANSWER Marketing Planning (target segments and marketing mix): specifying target markets -
Human Resource Management: employment planning - ANSWER
Human Resource Management: training and development - ANSWER
Organizational Theory - ANSWER
Organizational Theory: org change and development - ANSWER
Organizational Theory: org structure design - ANSWER
Organizational Theory: systems thinking - ANSWER
Organizational Theory: entrepreneurship/small business management - ANSWER
Operations Planning/Management Science - ANSWER
Operations Planning/Management Science: quantitative decision making models - ANSWER
Operations Planning/Management Science: quality/process management - ANSWER
Operations Planning/Management Science: supply chain logistics - ANSWER
Operations Planning/Management Science: planning - ANSWER
Operations Planning/Management Science: control - ANSWER
Operations Planning/Management Science: service management - ANSWER
Corporate Finance - ANSWER
Corporate Finance: capital budgeting - ANSWER https://www.investopedia.com/terms/c/capitalbudgeting.asp
Corporate Finance: cost of capital - ANSWER http://www.investinganswers.com/financial-dictionary/stock-valuation/cost-capital-
Corporate Finance: capital structure - ANSWER https://www.investopedia.com/terms/c/capitalstructure.asp
Corporate Finance: dividend policy - ANSWER https://www.investopedia.com/terms/d/dividendpolicy.asp
Corporate Finance: working capital management - ANSWER https://www.investopedia.com/terms/w/workingcapitalmanagement.asp
Corporate Finance: international finance - ANSWER https://www.investopedia.com/terms/i/international-finance.asp
Investments: - ANSWER
Investments: financing instruments - ANSWER https://www.investopedia.com/terms/f/financialinstrument.asp / https://www.youtube.com/watch?v=2I3iqQiZVjA / financial instruments are assets that can be traded / most provide an efficient flow and transfer of capital all throughout the world's investors / can be cash, a contractual right to deliver or receive cash or another type of financial instrument, or evidence of one's ownership of an entity
Relevant Cost: make or buy - ANSWER https://accountingexplained.com/managerial/relevant-costing/make-or-buy-decision
Relevant Cost: transfer pricing - ANSWER https://www.investopedia.com/terms/t/transferprice.asp
Relevant Cost: sell or process further - ANSWER https://accountingexplained.com/managerial/relevant-costing/sell-or-process-further
Resource Planning and Analysis: forecasting - ANSWER https://yourbusiness.azcentral.com/forecasting-techniques-human-resource-planning- 5543.html
Resource Planning and Analysis: cash budgeting - ANSWER http://smallbusiness.chron.com/cash-budgeting-forecasting-cash-flow-account-analysis -76507.html
Resource Planning and Analysis: variance analysis - ANSWER
Cost-Volume-Profit Analysis: cost behavior - ANSWER https://www.investopedia.com/terms/c/cost-volume-profit-analysis.asp
Cost-Volume-Profit Analysis: break-even analysis - ANSWER
Cost-Volume-Profit Analysis: target profit - ANSWER
Product Costing: absorption vs. variable - ANSWER http://accountingexplanation.com/variable_costing_versus_absorption%20costing.htm
Product Costing: activity-based - ANSWER http://smallbusiness.chron.com/activitybased-costing-vs-product-costing-57891.html
Product Costing: process vs. job order - ANSWER Companies that produce goods and physical products need some sort of system to track costs and production levels. Process costing and job order costing are both viable methods for doing just that. Which works better than the other depends on the nature of the products and the amount of products created. / Job Costing - track cost on a per-job basis.Process Costing - company tracks based on entire production department / https://bizfluent.com/about-5389912-process-vs-job-order-costing.html
Product Costing: byproduct - ANSWER By-product is a secondary product. By-products are minor products obtained incidentally in the process of manufacturing the main product. They possess some saleable value. A by-product is of minor commercial importance and often requires further processing before sale. The commercial or economic importance of the products classifies as main or joint products and by-products.
By-products are secondary products and of very low commercial value. They are jointly produced along with the main product and mostly in continuous process industries like oil refining, sugar manufacturing, chemical, meatpacking, and coal. Financial Reporting and Analysis: financial statements - ANSWER Financial Reporting and Analysis: financial ratios - ANSWER Financial Reporting and Analysis: regulatory environment - ANSWER
