STR-581 Capstone Exam steps 1-3

 STR/581 Capstone Exam – Part 1

1. The concept that some leadership attributes will work in some situations but not in

others can be described by the

2. Sam Meyers manages a telemarketing call center. He has 20 employees working for

him who are displeased with the way he yells and threatens to terminate them for what

they see as small issues. Which kind of power is Sam using to get the job done?

3. Which of the following is considered an organizational blueprint, which prescribes the

quantity and time frame for when each end product will be assembled?

4. In performing a SWOT analysis, which of the following would be considered as a

threat?

5. During the implementation of a project, which of the following should be the primary

focus of a consulting firm?

6. Which of the following is considered a major process flow structure?

7. Some studies indicate the best approach for transformational change may have the

chief executive officer create an atmosphere for change

8. Deming’s PDCA (plan, do, check, and act) cycle underlies what inherent Six Sigma

principle?

9. What can affirmative action assist organizations in achieving that diversity initiatives

cannot?

10. According to the job characteristics model, autonomy is defined as the degree to

which

11. Active listening requires:

12. An example of control criteria that can be used in any situation is ________.

13. Because practical considerations make job tryouts for all candidates infeasible, it is

necessary to __________ the relative level of job performance for each candidate on

the basis of available information.

14. Which of the following is ISO 14000 primarily concerned with?

15. Which of the following is a desirable strategy for managers aiming to reduce the

negative consequences of rumors?

16. ________ refers to an individual’s belief that he or she is capable of performing a

task.

17. When an employee volunteers to run a canned food drive, this is an example of

18. As a university student, your institution’s social principles and practices reflect on

you, as a stakeholder, in the organization. Therefore, it is your right to question how

these practices should be evaluated in relation to the social issues that the school is

addressing. If your university provides job-share programs, builds a day-care facility, and

only uses recycled paper, it could be said to be ________.

19. A project can be segmented into which of the following?

20. In order to make their firm a learning organization, managers should

21. Conflicts can be resolved by withdrawing from them or suppressing them. This

conflict-management technique is known as ________.

22. Adoration of a charismatic leader by followers can lead to

23. Which of the following statements is true with regard to the effectiveness of tactics?

24. ____________ is the biggest hurdle to overcome in a pay-for-performance plan.

25. Mary arrives at her new job. Before she can begin actually doing the work, she must

complete a series of activities including role playing and virtual reality interactions.

What type of training method does Mary’s new employer use?

26. In _____, workers have been fired for refusing to quit smoking, for living with

someone without being married, drinking a competitor’s product, motorcycling, and

other legal activities outside of work.

27. Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for

optimized production technology?

28. The Civil Rights Act of 1991 offered what for victims of unintentional discrimination?

29. Which of the following is an element that addresses elimination of waste under lean

production?

30. Training that results in ______ is costly because of the cost of training (which proved

to be useless) and the cost of hampered performance.

 STR/581 Capstone Exam – Part 2

1. Which of the following financial statements is concerned with the company at a point

in time?

2. A cost which remains constant per unit at various levels of activity is a:

3. M&M Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is

expected to exist forever. The company is currently financed with 75 percent equity and

25 percent debt. Your analysis tells you that the appropriate discount rates are 10

percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of

the stock.

If Dynamo wishes to change its capital structure from 75 percent equity to 60 percent

equity and use the debt proceeds to pay a special dividend to shareholders, how much

debt should they use?

4. Serox stock was selling for $20 two years ago. The stock sold for $25 one year ago,

and it is currently selling for $28. Serox pays a $1.10 dividend per year. What was the

rate of return for owning Serox in the most recent year? (Round to the nearest percent.)

5. The process of evaluating financial data that change under alternative courses of

action is called:

6. What decision criteria should managers use in selecting projects when there is not

enough capital to invest in all available positive NPV projects?

7. The convention of consistency refers to consistent use of accounting principles:

8. External financing needed: Jockey Company has total assets worth $4,417,665. At

year-end it will have net income of $2,771,342 and pay out 60 percent as dividends. If

the firm wants no external financing, what is the growth rate it can support?

9. Which of the following is considered a hybrid organizational form?

10. An activity that has a direct cause-effect relationship with the resources consumed is

a(n):

11. Next year Jenkins Traders will pay a dividend of $3.00. It expects to increase its

dividend by $0.25 in each of the following three years. If their required rate of return if

14 percent, what is the present value of their dividends over the next four years?

12. TuleTime Comics is considering a new show that will generate annual cash flows of

$100,000 into the infinite future. If the initial outlay for such a production is $1,500,000

and the appropriate discount rate is 6 percent for the cash flows, then what is the

profitability index for the project?

13. Your firm has an equity multiplier of 2.47. What is the debt-to-equity ratio?

14. If a company’s weighted average cost of capital is less than the required return on

equity, then the firm:

15. When a company assigns the costs of direct materials, direct labor, and both

variable and fixed manufacturing overhead to products, that company is using:

16. The major element in budgetary control is:

17. Horizontal analysis is a technique for evaluating a series of financial statement data

over a period of time:

.

18. Which of the following is an advantage of corporations relative to partnerships and

sole proprietorships?

19. The break-even point is where:

20. Turnbull Corp. had an EBIT of $247 million in the last fiscal year. Its depreciation and

amortization expenses amounted to $84 million. The firm has 135 million shares

outstanding and a share price of $12.80. A competing firm that is very similar to

Turnbull has an enterprise value/EBITDA multiple of 5.40.

What is the enterprise value of Turnbull Corp.? Round to the nearest million dollars.

21. Which of the following is considered a hybrid organizational form?

22. The most important information needed to determine if companies can pay their

current obligations is the:

23. Gateway, Corp. has an inventory turnover of 5.6. What is the firm’s days sales in

inventory?

24. Horizontal analysis is also known as:

25. Which of the following presents a summary of changes in a firm’s balance sheet

from the beginning of an accounting period to the end of that accounting period?

26. Ajax Corp. is expecting the following cash flows - $79,000, $112,000, $164,000,

$84,000, and $242,000 – over the next five years. If the company’s opportunity cost is

15 percent, what is the present value of these cash flows? (Round to the nearest dollar.)

27. Bond price: Regatta, Inc., has six-year bonds outstanding that pay a 8.25 percent

coupon rate. Investors buying the bond today can expect to earn a yield to maturity of

6.875 percent. What should the company's bonds be priced at today? Assume annual

coupon payments. (Round to the nearest dollar.)

28. Process costing is used when:

.

29. Jack Robbins is saving for a new car. He needs to have $21,000 for the car in three

years. How much will he have to invest today in an account paying 8 percent annually to

achieve his target? (Round to nearest dollar)

30. The accumulation of accounting data on the basis of the individual manager who has

the authority to make day-to-day decisions about activities in an area is called:

31. Variance reports are:

32. The cash conversion cycle?

33. In a process cost system, product costs are summarized:

34. Internal reports that review the actual impact of decisions are prepared by:

35. How firms estimate their cost of capital: The WACC for a firm is 13.00 percent. You

know that the firm’s cost of debt capital is 10 percent and the cost of equity capital is

20% What proportion of the firm is financed with debt?

36. The group of users of accounting information charged with achieving the goals of

the business is its:

37. An unrealistic budget is more likely to result when it:

38. Jayadev Athreya has started his first job. He will invest $5,000 at the end of each

year for the next 45 years in a fund that will earn a return of 10 percent. How much will

Jayadev have at the end of 45 years?

39. Firms that achieve higher growth rates without seeking external financing:

40. Teakap, Inc. has current assets of $1,456,312 and total assets of $4,812,369 for the

year ending September 30, 2006. It also has current liabilities of $1,041,012, common

equity of $1,500,000 and retained earnings of $1,468,347. How much long-term debt

does the firm have?

$803,010

4,812,369 = Long term debt + 1,041,012 + 1,500,000 + 1,468,347

Long Term Debt = 4,812,369 - 4,009,359 = 803,010

 STR/581 Capstone Exam – Part 3

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1. A firm must know where to position its product based on price and

2. What type of strategy consists of geographical pricing, price discounts and

allowances, promotional pricing, and differentiated pricing?

3. The marketing manager needs to know the cost of the research project before

approving it. During which stage of the marketing research process would such a

consideration most likely take place?

4. A valuable result of task environment analysis with respect to geographic,

demographic, psychographic and buyer-behavior factors is called

5. New-to-the-world products are ________.

6. These social responsibilities are those that are voluntarily assumed by a business or

organization. They include public relations activities, good citizenship, and full corporate

social responsibility.

7. When diversification involves additions of a business related to the firm in terms of

technology, markets or products, it involves

8. Which component of a marketing audit includes major developments in income,

prices, savings, and credit that affect the company?

9. The ability to meet humanity’s needs without harming future generations is now a

top priority in most corporate agenda

10. BMW's "The ultimate driving machine," American Express' "Don't leave home

without it," New York Times' "All the news that's fit to print," and AT&T's "Reach out

and touch someone" are all examples of ________.

11. A company can learn a great deal by analyzing the degrees of brand loyalty. For

example, ________ can show the firm which brands are most competitive with its own.

12. The strategic factor that involves the beliefs, values, attitudes, opinions, and

lifestyles of persons in the firm’s external environment, as developed from cultural,

ecological, demographic, religious, educational, and ethnic conditioning

13. A set of ideas on organizational control based on the belief that the separation of

the ownership from management creates the potential for the wishes of owners to be

ignored refers to

14. This is designed to check systematically and continuously whether the premises on

which the strategy is based are still valid

15. When performing this analysis, it is good for strategic planners to consider

similarities between the benefits the customers derive from the products and services

that other firms offer

16. This is a historically popular technique through which managers create a quick

overview of a company's strategic situation—it is based on achieving a sound fit

between internal resources and the external situation

17. A company that attempts to lead its industry in price and convenience by pursuing a

focus on lean and efficient operations is pursuing what strategy?

18. Leaders galvanize commitment to embrace change through clarifying strategic

intent, building an organization, and

19. Prestige LLC, a small company that manufactures specialty cereals and energy bars,

wants to launch a "green marketing" program in response to heightened consumer

awareness about environmental issues. What should the company do to maximize the

program's chances of being successful?

20. This is an important structural decision and resultant separate activities need to be

coordinated and integrated back together as a whole so the business functions

effectively

21. Company X's principal strength is its inbound and outbound logistics system; its

relative weakness, however, is after-sales service. Its competitor, Company Y, however

is often plagued with lagging shipments and an inflexible distribution setup. Company Y

remains successful because it maintains a fully staffed service department and, as a

result, the company is known for its dependable service. This type of analysis allows

them to identify ways to build on relative strengths and avoid dependence on

capabilities at which the other firm excels.

22. With ________ as a target market strategy, the firm concentrates on serving many

needs of a particular customer group

23. How do functional tactics compare to business strategies?

24. Under which of the following conditions is the frequency the most important factor

in media selection?

25. What is the perceived monetary value of the bundle of economic, functional, and

psychological benefits customers expect from a given market offering because of the

product, service, people, and image?

26. Which control should periodically reassess its approach to the marketplace with a

good marketing audit?

27. One of the ways to change the course of a brand is to modify the product. Under

product modification, ________ adds size, weight, materials, supplements, and

accessories that expand the product’s performance, versatility, safety, or convenience

28. Firms using this generic strategy attempt to build customer loyalty by stressing a

specific product attribute above other product qualities

29. Large-scale, future-oriented plans for interacting with the competitive environment

to achieve the company objective refers to its

30. Marketers need to identify the hierarchy of attributes that guide consumer decision

making in order to understand different competitive forces and how these various sets

get formed. This process of identifying the hierarchy is called ________.