AGBU 4361 Final Exam

If the capital investment F can be sold for $2000 at the end of year 5, what is the present value of the salvage value at the end of year 5 using an 8% discount rate

$1361.17

Suppose a new machine is introduced. It costs $10,000 and is expected to last 10 years. The manufacturer agrees to remove it at the end of its life for $1,000. The machine is expected to increase after-tax net cash flow by $2,000 per year. Given a discount rate of 10 %, please calculate the break-even after-tax net cash flow each year using the amortization technique.

$1690.19

Investment A has an initial cost of $1,000. Further, assume the required minimum rate of return ( the opportunity cost) is 8% and the investment has a life of 5 years. What is the equivalent annual cost of the $1,000 initial cost under these assumptions

$250.46

Owner of AgBiz corporation will purchase a new spray truck for $80,000. He would like to get a three-year $80,000 loan at 15% interest rate. How much is the loan payment each year?

$35038

what is the present value of receiving $100 per year for each of the next 5 years when discounted at 12%

$360.48

continuing with 65. assume that a replacement machine for investment E can be purchased for $6,000 at the end of the fifth ear. What are the net present values for investment E and F using an 8% discount rate

$7691.75; $8420.20

Investments E and F are mutually exclusive and have physical lives of five and 10 years, respectively. each requires and investment of $5,000. After tax annual net cash flows are $2,500 for E and $2,000 for F what are the present value of benefits for investment E and F using an 8% discount rate

$9981.75; $13420.20

which of the following best describes the administrative management model?

it focuses on the internal operation of the organization

all of the following are alternatives to specialization except

job delegation

The job design in which workers are given more activities to preform and more discretion about how to preform them is called

job enrichment

the technology in which the product is manufactures in assembly-line fashion by combining component parts into a finished product is

large batch

Ray owns and operates a small, rural farm. His organization should be ________ than a large organization

less specialized

goals are differentiated by

level area time frame specificity

if clearly definable differences between market segments do not exist, the best market strategy is the ____________

mass marketing strategy

a manager who has only a few subordinates has a span of management that is

narrow

caterpillar was caught unprepared for the worldwide recession in the construction industry in 1982. it took several years for the company to change and regain its industry leadership. This is an example of

reactive change

an assembly operation includes four different jobs. Bob spends three weeks on each of these jobs and then starts the cycle over again with the first hob of the operation. This is an example of job

rotation

Hershey is in the confectionary business. This is an example of its

scope

which of the following factors would probably make use of a matrix organization design inadvisable

several similar business owned by one corporation

an organizations obligation to protect and enhance the society in which it operates is called

social responsibility

the basis for all job-design activities is

specialization

delores is the legal counsel for a major manufacturing facility in the midwest. Her position is considered a __________ position

staff

all of the following are factors that influence group effectiveness except

standardization frequency of new problems physical dispersion competence of the manager

bausch & lomb has a large share of the fast growing contact lens market. Their contact lens product is an example of a/an

star

How do first-line managers spend most of their time

supervising production employees

If a major competitor of an organization suddenly creates a new type of product that makes the products of it competitors obsolete, this is an example of which type of force in the environment

task environment

when an organizations customers out pressure on the organization to reduce prices on its goods, this is an example of the organization

task environment

What category of managerial skills is required to accomplish the specialized tasks associated with the managers job?

technical

a wide span of management results in

a flat organization

an organization development technique that assess current leadership styles is

a managerial grid

the primary purpose of the management process is to

achieve organizational goals efficiently and effectively

all of the following are advantages of product departmentalization except

administrative costs are lower

which of the following represents organization change by means of a change in organization design

adopting a new main bassi of departmentalization

Which of the following is true of the chain of agribusiness?

begins with material of relatively low value each step adds value to the product

organization charts

can be thought of as a picture or map of an organization

a organization where power and control are kept at the top levels of management is

centralized

what is apparently the major reason so many companies form all over the world are embracing the maquiladoras concept

cheap labor

effective delegation incorporates all the following steps except

closely supervising the subordinate following the delegation

Essex incorporated owns a pizza chain, and insurance company, a chain of convenience sores, and a hardware chain. Each business is run by a general manager, and the overall performance of each business is evaluated by the essex corporate staff. As of late, financial performance has been less than desirable. Which form of organization design does essex have?

conglomerate (H-form)

the process by which managers identify alternative courses of action that the organization might follow if various conditions arise is called_______ planning.

contingency

a manager assigns a worker a project to be completed and the holds periodic meetings with the worker to determine whether target sates for subparts of the project are being met. Which management function do these meetings represent

controlling

the systematic distribution of power and authority to middle- and lower- level managers throughout the organization is

decentralization

all of the following are basic organizing components except

decision making

grouping customers according to age, income, and education is called ______ segmentation

demographic

which of these refer to purposely becoming smaller by reducing the size of the workforce?

downsizing

the cost advantages which are associated with large organizations are known as

economies of scale

a force-field analysis identifies

factors that facilitate and hinder organization change

ed smith is a plant manager for Bell electrons. This morning he presented two retiring employees with certificates of appreciation and gold watches. What managerial role was he fulfilling?

figure head

a regional tractor manufacturing operation has the following division: manufacturing, finance, human resources, marketing, and shipping/receiving. This is an example of ______________

functional

all of the following are dimensions of work force diversity except

gender age ethnicity sexual preference

strategy implementation is concerned with

how the strategy is operationalized and executed

the total-cost line in break-even analysis begins at

the minimum level of fixed cost

a retail store plots it monthly sales for the last three years and then forecasts the sales for the upcoming year. This is an example of

time-series forecasting

which of the following is a common reason for resistance to change

uncertainty feelings of loss differing preceptions

which of the following is an economic force in the environment?

unemployment inflation intrest rates economic growth

jane owns a company that prepares and sends customized " goody" baskets to a firms clients depending on their special requests. This is an example of _____________ technology

unit or small batch

which of the following represents organization change by means of change in technology/operations

upgrading the management information system

how much money needs to be put into a saving account today in order to have $1.25 in 2 years if the account earns 12% interest per year

1.00

Suppose that $1.00 is placed in a savings account at 12% interest, which is paid once a year. what is the future value of the money at the end of the second year?

1.25

suppose that $1.00 is placed in savings account at a 12% interest, which is paid four times a year. What is the future value of the money at the end of the second year?

1.27

Investment C has a initial cost od $5,000. Associated with the investment is a present value of benefits of $6,000. If investment D gas an initial cost of $10,000 and the present value of its benefits is $11,000. what are the B/C ratios of investments C and D?

1.2: 1.1

continue with 65. Assume that a replacement machine is purchased at the end of the fifth year. What are the benefit cost rations for investment E and F using an 8% discount rate

1.8468; 2.6840

very large organization have difficulty developing an organization chart because

of the large number of positions involved

a system 4 design has

openness and flexibility flexibility and communication communication and participation participation and flexibility

if clearly definable difference between production technologies exist for farmers in a firms target market, an agribusiness should use a _________ strategy

operating characteristics segmentation

you must decide how to structure a work group so its work can be accomplished most efficiently. you have twelve people to deal with. You finally decide to make two of them chiefs and assign the remaining ten to the two teams. What are you doing?

organizing

When the last sam walton was opening his new hyper mart stores, television ads would show sony television sets being chopped into two pieces by a sword- wielding samurai warrior. The accompanying dialogue said, "you can go elsewhere and spend more or get considerably less Sony." what competitive strategy does this approach represent?

overall cost leadership

___________ is a measure of how much is created relative to the resources use to create it

productivity

the marketing mix includes all of the following, except

profit

_____________________ innovations are new products or technologies developed by an organization that completely replace the existing products or technologies in an industry

radical