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
