MGSC Exam 2 7-8, 10-11

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If an initial stock issuance is​ $800,000, what would be the expected cost paid to​ lawyers, accountants, and​ underwriters, based on the average for IPOs in this​ range?

$200,000

Goodwill on the balance sheets of​ S&P 500 firms changed from​ $1.7 trillion in 2007 to how much in​ 2017?

$3 trillion

The top national statutory corporate tax rates in 2018 among sample countries ranged from​ ______ percent in Bermuda to​ ______ percent in the United Arab Emirates​ (UAE).

0; 55

What percent tax on foreign earnings held offshore in cash accounts was imposed by new U.S. federal tax law in​ 2018?

15.5

In the corporate​ world, employees reporting any unethical violations they discover or see in the firm receive up to​ ______ percent of the proceeds of legal proceedings against firms for wrongdoing.

25

Whistle blowers in the corporate world receive up to​ ________ percent of the proceeds of legal proceedings against firms for wrongdoing.

25

About how many African countries are considered​ democracies?

30

A​ seven-year study by Fred​ Kiel, author of Return on Character​, followed​ 8,000 employees and 84 top executives of Fortune 500​ companies; the study indicated that​ character-driven leaders deliver​ ______ times greater profitability results than​ self-focused leaders.

5

Regarding corporate​ valuation, a conservative rule of thumb is to establish a​ business's worth as​ ______ times the​ firm's current annual profit.

5

A Wall Street Journal article recapped U.S. standards regarding​ boss-and-subordinate love affairs at work. Only​ ______ percent of all firms sampled had no restrictions on such​ relationships; ______ percent of firms have policies that prohibit relationships between a supervisor and a subordinate.

5; 80

How many basic types of organizational structure are discussed in the​ chapter?

7

Production processes typically constitute more than​ ________ percent of a​ firm's total assets.

70

What percent of cash repatriated by U.S. companies in going towards stock buybacks and dividend​ payouts, as opposed to investments in employees and company​ infrastructure?

70

With the merger and acquisition boom this​ decade, S&P 500 firms experienced a​ _________ percent increase in goodwill.

70

Oceans cover more than​ ______ percent of the earth.

71

There is great variation across Europe with regard to levels of union​ membership, ranging from​ ______ percent of employees in Finland to​ ______ percent in France.

74, 8

Which​ term(s) below would not be a good annual​ objectives?

Add new suppliers as soon as possible.

In developing projected financial​ statements, how are retained earnings calculated on the balance​ sheet?

Add the net income less dividends to the prior​ year's retained earnings.

Which of the following statements are​ TRUE?

Although the exponential increase in​ social-media engagement has created huge opportunities for​ marketers, it also has produced severe​ threats; any kind of negative publicity travels fast online.

​Theoretically, how much debt should a company carry on its balance​ sheet?

An enterprise should carry enough debt in its capital structure to boost its return on investment in projects earning more than the cost of the debt.

Who is a big advocate for economies of​ scale, arguing that growth for the sake of growth is a misguided​ strategy? He suggests firms should be careful not to venture into areas outside their corporate​ strategy; instead, they should deploy resources into areas that will build economies of scale.

CEO of JPMorgan Jamie Dimon

Which statement below is​ FALSE?

Changes in structure often require changes in an​ organization's strategies.

What country ranks about 90th out of 190 countries in terms of doing business due to​ human-rights' issues and substantial disregard for​ copyright, patent, and trademark rules of​ law?

China

What​ country's strategic plan is to develop and use quantum computers to gain world dominance and superiority in information​ technology, financial​ systems, power​ grids, and military​ weapons?

China

​______ requires many firms to share their technological knowledge as a condition of doing business​ there; this is a growing problem for U.S. firms and America in general.

China

What formula below is correct for valuing a company using the​ price-earnings ratio​ method?

Divide the market price of the​ firm's common stock by the annual earnings per share​ (EPS) and multiply this number by the​ firm's average net income for the past 5 years.

Which statement below is​ FALSE?

Donald Palmer recently reported that misconduct is most often done by people who party weekly.

Chapter​ 8's exemplary​ strategist, Jamie​ Dimon, CEO of JP​ Morgan, is a big advocate for economies of scale. What does Dimon advice regarding​ this?

Firms should be careful not to venture into areas outside their corporate strategy.

Who is featured at the beginning of the chapter as a most​ "exemplary strategist?"

Former CEO of​ PepsiCo, Indra Nooyi

The​ ______ family of standards concerns the extent to which a firm minimizes harmful effects on the environment caused by its activities and continually monitors and improves its own environmental performance.

ISO 14000

All of the following statements are true EXCEPT

ISO has legal authority to enforce its​ regulations' implementation.

In what way mentioned below would retained earnings on the balance sheet decrease from one year to the​ next?

If the firm had positive net income for the year but pays out dividends greater than the net income

Which of the following is NOT a typical characteristic of most Japanese​ managers?

Impulsive

According to statistics from the United​ Nations, the rate of female participation in the labor force of​ ______ is 35​ percent; this is quite​ low, especially because women make up 42 percent of college graduates in that country. But women in this country with a college degree are expected to let their careers take a back seat to caring for their​ husband, children, and elderly parents. According to Sylvia Ann​ Hewlett, president of the Center for​ Work-Life Policy, a Manhattan think​ tank, "The measures of daughterly guilt are much higher in women in this country than in other​ countries."

India

What​ country's rate of female participation in the labor force is about 35 percent even though women make up about 42 percent of college graduates in this​ country?

India

​_____ generates about 62 million tons of solid waste every​ year, and that amount is expected to increase fivefold by 2051. Currently only about 28 percent of the​ country's garbage is treated and processed.

India

What country does the following​ describe? This country is a democratic Pacific archipelago comprised of thousands of islands. Its currency is the rupiah and its economy is one of the​ fastest-growing in Asia. This​ country's s GDP growth was 5 percent in 2017 and it continues to grow. Exports are surging. This country has a large population and densely populated regions. It has the​ world's second-highest level of​ biodiversity, with vast areas of wilderness and abundant natural resources.

Indonesia

Americans tend to use first names instantly in business dealings with​ foreigners, but foreigners find this presumptuous.​ In what country are first names used only among family members and intimate​ friends, with even longtime business associates and coworkers shying away from the use of first​ names?

Japan

Due to its dwindling workforce and aging​ population, what country is increasingly promoting women into managerial​ positions?

Japan

Which statement below is not a guideline for developing an organizational​ chart?

Make sure only presidents of divisions report to the CEO.

Which statement below is​ FALSE?

Many companies illegally monitor the social media activities of employees and prospective employees.

Which of the following sequences of marketing activities is​ correct?

Market​ segmentation, target​ marketing, product positioning

What country is an authoritarian society in terms of​ schools, churches,​ businesses, and families where employers seek workers who are​ agreeable, respectful, and obedient rather than​ innovative, creative, and​ independent?

Mexico

What country is especially attractive for manufacturing products that are bulky or costly to​ transport, such as​ automobiles? A key variable hurting this country is​ drug-related violence since its homicide rate exceeds 15 people per​ 100,000, compared with a​ per-capita rate of about 5.0 in the United States and 1.1 in China.

Mexico

​______ is an authoritarian society in terms of​ schools, churches,​ businesses, and families. In​ general, employers seek workers who are​ agreeable, respectful, and​ obedient, rather than​ innovative, creative, and independent. Workers tend to be​ activity-oriented rather than problem solvers.

Mexico

​__________ asserts that organizations have no obligation to do any more for society than is legally required.

Milton Friedman

The World Bank and the International Finance Corporation annually rank 189 countries in terms of their respective ease of doing business. The index ranks nations from 1​ (best) to 189​ (worst). What country is​ #1?

New Zealand

The top 20 most valuable college football programs are listed in the chapter in terms of their monetary value. What team is most​ valuable?

Ohio State Buckeyes

A​ full-blown example of a projected financial statement analysis is worked out and presented in Chapter 8 for​ _____.

P&G

Which factor below commonly prohibits effective resource​ allocation?

Placing too great an emphasis on​ short-run financial criteria

​______ refers to countries imposing​ tariffs, taxes, and regulations on firms outside the country to favor their own companies and people. Most economists argue that engaging in this activity harms the world economy because it inhibits trade among countries and invites retaliation.

Protectionism

Chapter​ 8's exemplary​ strategist, Jamie​ Dimon, CEO of JP​ Morgan, says successful strategic planning has more to do with heart than mind. What does Dimon say this​ means?

Provide people a platform to which they can contribute.

Which statement below is​ FALSE?

Reengineering is an analogous term for benchmarking.

Which is NOT a characteristic of​ policies?

Represent the basis for allocating resources

Which statement below is not a guideline for developing an organizational​ chart?

Reserve the title president for the CEO of the firm.

Which​ statement(s) below is​ FALSE?

Restructuring is concerned primarily with employee​ well-being rather than shareholder​ well-being.

Who​ said, "When wealth is​ lost, nothing is​ lost; when health is​ lost, something is​ lost; when character is​ lost, all is​ lost."

Rev. Billy Graham

Which​ statement(s) below is​ TRUE?

Seeing Goodwill regularly increasing on a balance sheet is not a good thing.

Which​ statement(s) is​ TRUE?

Sometimes firms will increase their Treasury Stock near the end of the​ quarter, or near the end of the​ year, to inflate their EPS​ "artificially".

According to Chapter​ 10, a country with one of the lowest bribery rates is​ ______ and a country with one of the highest bribery rates is​ ______.

South​ Korea; India

Which organizational structure has the disadvantage of ambiguous roles for some senior​ executives?

Strategic Business Unit​ (SBU)

What company is featured in Ethics Capsule 10 as being exemplary in the shoe​ business, aiming to put shoes on every child on the planet and donating a pair of shoes for every pair it​ sells?

TOMS​ Shoes, Inc.

Who is the exemplary strategist who is trying to convert all smokers globally to a new smokeless tobacco product that is much safer even than​ e-cigarettes?

The CEO of Philip Morris

Which​ statement(s) below is​ FALSE?

The percentage of large companies in the United States with a chief operating officer​ (COO) has declined almost every year for a​ decade, to about 60 percent today.

Which of the following statements is TRUE regarding the issuance of corporate bonds in the United​ States?

The year 2017 was the seventh straight year that a record dollar value of bonds was sold in the United​ States, totalling more than​ $1.5 trillion.

Which statement below is​ FALSE?

There are more female CEOs in the United States than male CEOs.

As discussed in Chapter​ 10, what do the following people have in​ common: Harvey​ Weinstein, Kevin​ Spacey, C. K.​ Louis, Mark​ Halperin, Charlie​ Rose, Matt​ Lauer, and Garrison​ Keillor?

They all were implicated in sexual harassment allegations.

Which of the following is NOT true about​ objectives?

They should use terms like​ "maximize," "minimize," and​ "as soon as​ possible."

T/F: An increasing number of U.S. companies are reincorporating in foreign countries to reduce their tax burden and doing this typically involves acquiring a foreign firm.

True

Which is NOT a major factor that commonly prohibits effective resource​ allocation?

Underprotection of resources

As of 2018 which of the following countries had the highest corporate tax​ rate?

United Arab Emirates

What university in the USA leads all universities in annual usage of green​ power?

University of Tennessee

In performing​ EPS/EBIT analysis, how is the first row​ (EBIT) determined?

Use the most recent year EBIT number plus or minus the impact of recommendations to determine a range.

In​ EPS/EBIT analysis, from where does the tax rate percentage​ come?

Use the​ company's prior year tax rate as revealed by dividing income before taxes by taxes paid off the​ firm's income statement.

Which statement below is​ FALSE?

Workplace romances actually decrease work​ performance, adding a dynamism and energy that translates into decreased​ morale, communication,​ creativity, and productivity.

The amount by which retained earnings changes is obtained by subtracting

any dividends to be paid for that year from net income.

According to​ Schein, what statement below is not included as a useful element in linking culture to​ strategy?

benchmarking

The U.S. Foreign Corrupt Practices Act​ (FCPA) governs​ ______ in the United States and has stepped up enforcement.

bribery

​______ is defined by ​Black's Law Dictionary as the​ offering, giving,​ receiving, or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty.

bribery

What statement below is​ FALSE?

conflict is always bad

A recent study by The Institute of Business Ethics​ (IBE) titled,​ "Does Business Ethics​ Pay?" concluded that companies that display a​ "clear commitment to ethical​ conduct" ______ outperform companies that do not display ethical conduct.

consistently

The term​ "corporate wellness" has largely been replaced by what new​ term?

corporate well being

Mass communication and high technology have​ ________ in diverse cultures worldwide.

created similar patterns of consumption

Communication between domestic headquarters and overseas operations is often made difficult by

cultural differences

What is another term for​ profits?

earnings

According to the International Standards​ Organization, the word​ _____ is defined a surrounding in which an organization​ operates, including​ air, water,​ land, natural​ resources, flora,​ fauna, humans, and their interrelations.

enviornment

According to the ISO 14001​ standard, a community or organization is required to put in place and implement a series of practices and procedures​ that, when taken​ together, result in​ a/an ______.

environmental management system​ (EMS)

American managers in China have to be careful about how they arrange office furniture because Chinese workers believe in ​______​, the practice of harnessing natural forces.​ Also, U.S. managers in Japan have to be careful about ​______​, whereby Japanese workers expect supervisors to alert them privately of changes rather than informing them in a meeting.

feng​ shui; nemaswashio

What change strategy involves giving orders and enforcing those​ orders?

force

All of the following are potential disadvantages to​ initiating, continuing, or expanding business across national borders EXCEPT

foreign operations can absorb excess​ capacity, reduce unit​ costs, and spread economic risks over a wider number of markets.

According to Chapter​ 10, which of the following actions is​ unethical?

insider trading and overpricing

Which element in the projected income statement CANNOT be forecasted using the​ percentage-of-sales method?

interest expense

Simply having a code of ethics

is insufficient to guarantee that employees behave in an ethical manner.

When a firm buys more of its own common​ stock, what is the effect on the​ firm's earnings per share​ (EPS) value?

it goes up

A disadvantage of a functional structure is​ it____.

leads to poor delegation of authority.

What type of structure is the most complex of all the organizational designs or​ structures?

matrix

In contrast to strategy​ formulation, strategy implementation focuses more on​ _____.

motivation skills rather than analytical skills

Generally​ speaking, in​ Europe, the farther​ ______ on the​ continent, the more participatory the management style.

north

​__________ involves companies hiring other companies to take over various parts of their functional​ operations, such as human​ resources, information​ systems, payroll,​ accounting, customer​ service, and even marketing.

outsourcing

What is the broad term that refers to all other terms listed below. The term can apply to all divisions and departments​ (such as​ "We are an equal opportunity​ employer"), or to a single department​ ("Employees in this department must take at least one training and development course each​ year").

policies

For the first time ever in the United​ States, cars,​ trucks, planes, and trains have displaced​ _____ as the biggest USA polluter.

power plants

The divisional structure can be organized by​ ____.

process or customer

Perceptual mapping is a marketing tool associated with​ _____.

product positioning

Policies help an organization in all of the following ways EXCEPT

reduce work load of employees.

​__________ refers to U.S. companies moving a portion of their manufacturing back to the United States.

reshoring

According to the​ chapter, "______ may be the​ single-greatest threat to successful strategy​ implementation."

resistance to change

In developing projected financial​ statements, with what row item does one​ start?

revenues

The Equal Employment Opportunity Commission​ (EEOC) defines​ ______ broadly as unwelcome sexual​ advances, requests for sexual​ favors, and other verbal or physical conduct of a sexual nature.

sexual harassment

The denominator of EPS is

shares outstanding

​A(n) ______ reveals how a​ firm's operations impact the natural environment. This document discloses to shareholders information about the​ firm's labor​ practices, product​ sourcing, energy​ efficiency, environmental​ impact, and business ethics practices.

sustainability report

Limitations of​ EPS/EBIT analysis include​ ______.

timing and control

The corporate valuation formula for the net worth method is​ _____.

total​ shareholders' equity​ (SE) minus​ (goodwill +​ intangibles).

The shares of stock of a firm that are owned by the firm itself are called​ _____.

treasury stock

Is it true or false that the free Excel strategic planning template at www.strategyclub.com will automatically balance your projected balance​ sheets, but​ 1) you likely will need to make adjustments to the cash​ account, and​ 2) the template does not automatically balance your existing balance​ sheets, i.e. once you enter your​ firm's financial statements into the template​ format, you will need to make adjustments as needed.

true

​______ refers to employees reporting any unethical violations they discover or see in the firm.

whistle-blowing

Responsibility for encouraging ethical decision making and ensuring ethical behavior in a firm lies

with both a​ firm's strategists and its managers.

Which statement below is​ TRUE?

​"Going public" means selling off a percentage of a company to others to raise​ capital; consequently, it dilutes the​ owners' control of the firm.

Exports of goods and services from the United States account for what percent of U.S. gross domestic product​ (GDP)? In​ contrast, as a percent of gross domestic​ product, exports comprise what percent of the German​ economy?

​13.0; 46.0

What are the corporate tax rate percentages in the United​ States, Mexico, and​ Canada, respectively?

​21; 30; 26.5

Fully​ ___ percent of the​ world's population lives outside the United​ States, and this group is growing​ ___ percent faster than the U.S. population.

​95; 70

What are the three categories of approaches for managing and resolving​ conflict?

​Avoidance, defusion, and confrontation

What three retailers are discussed in the chapter as being the top 3 Green​ Power-Use retailers in 2017.

​Kohl's Department​ Stores, Starbucks​ (company-owned café retail​ stores), IKEA

The marketing mix variables include what aspects of a product​ offerings?

​Product, place,​ promotion, price

According to Table​ 8-5 in Chapter​ 8, what are the three most corrupt countries in the​ world?

​Somalia, South​ Sudan, North Korea

​In Japan, business relations operate within the context of ​______​, which stresses group harmony and social cohesion. In​ China, business behavior revolves around ​______​, or personal relations. In South​ Korea, activities involve concern for ​______​, or harmony based on respect of hierarchical​ relationships, including obedience to authority.

​Wa; Guanxi; Inhwa

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-product

Green power is​ _____.

​renewable, such as​ wind, solar, and water


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