BUS 495 Final Exam

¡Supera tus tareas y exámenes ahora con Quizwiz!

In the Boston Consulting Group (BCG) Matrix, which element represents the industry growth rate in sales, measured in percentage terms? First quadrant X-axis Second quadrant Y-axis Third quadrant

Y-axis

Subdividing a market into distinct subsets of customers according to their needs and buying habits is known as Market segmentation Market segregation Product diversification Positioning Market penetration

Market segmentation

What is the most complex form of organizational structure? Functional SBU Divisional Matrix Geographic

Matrix

Operating income is sometimes also called SWOT ROA EPS EBIT ROE

EBIT

A functional structure can be effective at eliminating short-term and narrow thinking False True

False

All items on the income statement can be forecasted using the percentage-of-sales method True False

False

Most large companies have abandoned the functional structure in favor of decentralization False True

True

With a divisional structure, it is possible that competition between divisions may become so intense that it leads to improved sharing of ideas and resources for the common good of the firms. False True

False

One of the steps of the SWOT Matrix is to list the firm's key external opportunities. False True

True

The size of the circle in a BCG Matrix corresponds to the proportion of corporate revenue generated by that business unit. False True

True

Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding external threats? WT WO SO SW ST

WT

You are making a $120,000 investment and feel that a 10 percent rate of return is reasonable given the nature of the risks involved. You expect you will receive cash flows of $48,000 in the first year, $54,000 in the second year, and $56,000 in the third year. You expect to invest an additional $12,000 in the fourth year. What is the net present value of this investment given your expectations? $14,206.10 $18,534.25 $5,607.16 $2,141.93 $16,233.33

$2,141.93 (-120000+48000/(1+0.1)^1 + 54000/(1+0.1)^2 + 56000/(1+0.1)^3 - 12000/(1+0.1)^4 = 2141.93)

A proposed project requires an initial cash outlay of $749,000 for equipment and an additional cash outlay of $48,500 in year one to cover operating costs. During years 2 through 4, the project will generate cash inflows of $354,000 a year. What is the net present value of this project at a discount rate of 16 percent? $128,612 -$105,427 -$41,209 $239,601 $67,333

-$105,427 (-749000 - 48500/(1+0.16)^1 + 354000/((1+0.16)^2 + 354000/(1+0.16)^3 + 354000/(1+0.16)^4=105426.81)

Name and briefly explain Porter's Three Tests for assessing value creation through diversification

?

Name and explain the two dimensions of the BCG Portfolio Matrix

?

Under Armour is considering entering the wearables segment by acquiring Fitbit Inc, which is one of the pioneers of this innovative technology. Currently, Fitbit has a market valuation of $1.3 billion. The boom in wearable technology has been mainly fueled by fitness, such as wearable gadgets' that monitor a person's heart rate or accurately track exercise levels. These gadgets have been successful because they are helpful to the user and easy to integrate into everyday life.Explain how Porter's Cost of Entry Test can be used by Under Armour to evaluate value-creation derived from the potential acquisition of Fitbit. Name two other Porter's Tests that can be used to examine value creation from diversification

?

What is NOT one of the basic ways a divisional structure can be organized? By process By product By customer By cost By geographic area

By cost

Which divisional structure stands out for effectiveness when a few major customers are of paramount importance and many different services are provided to these customers? By geographic area By product By cost By customer By process

By customer

In the BCG Matrix, a division with a relative market share position in a low-growth industry can be described as a: Cash Cow Star Question Mark Dog Failure

Cash Cow

In preparing projected statements, to project cost of goods sold in the income statement, which of these methods is recommended? Net income method Outstanding shares method Net worth method Common size method using percentage-of-sales Price-earnings ratio method

Common size method using percentage-of-sales

Two primary sources of capital are Debt and borrowings Debt and sale of assets Debt and equity Equity and sale of assets Debt and accounts receivable

Debt and equity

The Omega Company sells two very different types of products, each of which needed special emphasis. The type of structure that would best suit the Omega Company is the ________ structure. Divisional-by-geography Divisional-by-region Divisional-by-size Divisional-by-process Divisional-by-product

Divisional-by-product

What type of organizational structure promotes specialization of labor and allows rapid decision making? Divisional structure by customer Matrix structure Functional structure Divisional structure by product Strategic business unit

Functional structure

Which element in the projected income statement CANNOT be forecasted using the percentage-of-sales method? Administrative expense Operating expenses Interest expense Cost of goods sold Selling expense

Interest expense

Which of the following is NOT a management issue central to strategy implementation? Performing an internal audit Minimizing resistance to change Revising reward and incentive plans Devising policies Developing an effective human resources function

Performing an internal audit

Both the Internal-External (IE) and Boston Consulting Group (BCG) Matrices are called _____________ matrices. Vector Strategy Velocity Portfolio Security

Portfolio

What tends to become a more attractive financing technique when interest rates are high? Staying privately owned Stock issuance Borrowing Debt Cost cutting

Stock issuance?

Alfred Chandler's conclusions on the relationship between strategy and structure can be summed up as Structure shapes strategy Structure follows strategy Structure and strategy are unrelated Strategy and structure are independent factors Strategy follows structure

Structure follows strategy

Which section of the SWOT Matrix involves matching internal strengths with external opportunities? The ST cell The WT cell The SW cell The SO cell The WO cell

The SO cell

Which of the following is NOT given as an example of a decision that may require finance/accounting policies? To extend the time of accounts receivable To establish a certain percentage on accounts within a specified period of time To be a price leader or a price follower To lease or buy fixed assets To use LIFEO, FIFO, or a marker-value accounting approach

To be a price leader or a price follower

A projected financial analysis can be used to forecast the impact of various implementation decisions False True

True

Another term for earnings is profits True False

True

Dividend and taxes cannot be forecasted using the percentage-of-sales method True False

True


Conjuntos de estudio relacionados

AEF1 - U6A - Complete the sentences with a subject pronouns (I, he, etc) or object pronoun (me, him, etc)

View Set

CHAPTER 40 Immune Problems and Infectious Diseases

View Set

STA 215 Section 3.1-3.6 (Part 1)Descriptive Statistics: The five number summary and percentiles

View Set

Chapter 9 Installing and Configuring Security Appliances

View Set