hich of the following are the four geographic regions in which the company sells branded and

private-label athletic footwear?

Germany, Brazil, China, and the United States

Europe-Africa, Latin America, Asia-Pacific, and North America

The United States, Argentina, Great Britain, and Japan

Japan/China, North America, the European Union, and the Middle East

Latin America, Europe, China, and North America

A footwear-maker's price competitiveness in selling branded footwear to retailers in a
particular geographic region is determined by
how favorably its wholesale price compares with the wholesale price being charged
by company having the lowest-priced footwear brand (after all mail-in rebates are
factored in).
whether its wholesale price is above or below the average price of all companies
having the same S/Q rating in the region.
how favorably its wholesale price compares to the lowest price being charged by the
rival company having the largest number of models/styles in the region.
how favorably its wholesale price compares with the highest wholesale price being
charged by any rival in any geographic region.
whether its wholesale price is above or below the average price of all companies
competing in that geographic region.
Which the following are factors in determining a company's credit rating?

Its times-interest-earned ratio, debt-equity ratio, and annual free cash flow

Its debt-equity ratio, annual free cash flow, current ratio, and gross profit margin
Its loans outstanding, dividend payout ratio, accounts payable, and annual interest
payments
A company's current ratio, the value of pairs in inventory, and its annual interest
payments

Its debt-asset ratio, default risk ratio, and interest coverage ratio
The market for private-label athletic footwear is projected to grow
8% annually in all four geographic markets during Years 11-15, and then slow
gradually to 3% annually in all markets by Year 20.
10% annually in all four geographic regions during the Year 11-Year 15 period and
8.5% annually in all four regions during the Year 16-Year 20 period.
 4-6% annually in all 4 regions during the Year 11-Year 20 period.
10% annually in North America and Latin America during the Year 11-Year 20 period
and 8.5% annually in Europe-Africa and the Asia-Pacific regions during the Year 11-
Year 20 period.
10% annually in North America and Latin America during the Year 11-Year 20 period
and 12% annually in Europe-Africa and the Asia-Pacific during the Year 11-Year 20
period.

The company's shipments of newly-produced branded and private-label footwear

from its plants to its regional distribution centers are subject to

shipping charges of $1.50 per pair on all pairs shipped to distribution centers in
the same region as the production plant and $2.50 on all pairs shipped from one
region to another.

export fees equal to 4% of the manufacturing costs of the pairs shipped and
exchange rate shifts of as high as 15%.

3-million pair import quotas on shipments from foreign plants to Europe-Africa

and Asia-Pacific.

any applicable import tariffs and exchange rate adjustments.

tariffs of $5 per pair, shipping fees of $2.50 per pair, and exchange rate shifts of
as high as 12%.

In Year 11, footwear companies can expect to sell

an average of 4.4 million branded pairs and an average of 1.2 million private-label
pairs, although sales at some companies may run higher or lower than the averages
due to differing levels of competitive effort.

exactly 4.844 million branded pairs and 800,000 private-label pairs.

an average of 5.5 million branded pairs and an average of 1.5 million private-label
pairs.
no less than 4.25 and no more than 4.75 million branded pairs and no less than
600,000 and no more than 1.0 million private-label pairs.
 an average of 4.84 million branded pairs and an average of 800,000 private-label
pairs, although sales at some companies may run higher or lower than the averages
due to differing levels of competitive effort.

The reject rates at the company's footwear plants are a function of

the size of worker's annual base pay, year-end incentive bonuses, the number of hours of
overtime pay, the plant's performance/features rating, and the number of models/styles
comprising the company's product line.
best practices training, the number of plants, the number of hours of overtime pay, and
the installation of plant upgrade option D.
best practices training, overtime pay, spending for TQM/Six Sigma quality control, the
number of models/styles comprising the company's product line, and the installation of
plant upgrade option C.
the S/Q rating, worker experience, incentive bonuses for teamwork and perfect
attendance, best practices training, spending for new features and styling, and the
installation of plant upgrade option B.
the size of the incentive payment per non-defective pair produced, spending for best
practices training, spending for TQM/Six Sigma quality control efforts, the number of
models/styles comprising the company's product line, and the installation of plant
upgrade option A.

The market for branded athletic footwear is projected to grow

5-7% annually in all four geographic regions during the Year 11-Year 15 period and 2-
4% annually in all four regions during the Year 16-Year 20 period.
8% annually in all four geographic markets during Years 11-15, and then slow
gradually to 6% annually in all markets by Year 20.

7-9% annually worldwide during the Year 11-Year 20 period.

9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15
period and 5-7% annually in North America and Europe-Africa during the Year 11-Year
15 period.

3-6% annually worldwide during the Year 11-Year 20 period.

Which of the following is the most important factor in determining a company's unit sales and
market share of private-label footwear in a particular geographic region?

The amount of merchandising support provided to private-label retailers

The number of new performance features added to the company's private-label footwear
line each year

The company's bid price

Whether the company's private-label footwear has a higher S/Q rating than the footwear
 of rival private-label manufacturers

The appeal of the celebrities signed to endorse the company's footwear

Which of the following is not an accurate description of your company's plant operations?

Plants can produce 50, 100, 150, 200, 250, 350, or 500 branded models/styles.
Standard and superior materials are sourced from outside suppliers at prices that vary
according to global demand-supply conditions.
Best practices training and TQM/Six Sigma are used to enhance the S/Q ratings of the
footwear that is produced and to also reduce reject rates.
All private-label footwear is outsourced from contract manufacturers in Latin America
and the Asia-Pacific at prices equal to $8 per pair.
The company compensates production workers on the basis of both base pay and
incentive payments per non-defective pair produced.

The interest rate a company pays on loans outstanding depends on

its current ratio, debt-equity ratio, gross profit margin, and operating profit margin.

the amount of cash on hand to make interest payments.

its debt-equity ratio and interest coverage ratio in the prior year.

Its credit rating.

how much it has borrowed—the lower the amount of loans the company has taken
out, the lower the interest rate on any new loans.

Which of the following are components of the compensation package for production workers
at your company's plants?
Weekly salary, fringe benefits, year-end bonuses tied to the number of non-defective
pairs produced, and overtime pay
Hourly wages, piecework incentives per pair produced, perfect attendance bonuses at
best practices training programs, fringe benefits, and overtime pay

Annual base salary, teamwork bonuses, fringe benefits, and stock options

Base wages, incentive payments per non defective pair produced, and overtime pay

Hourly wages, fringe benefits, and overtime pay

The factors that affect a company's S/Q rating include:
the number of performance features built into its branded models/styles; how long it
has been using TQM/Six Sigma quality control programs; whether the company has
invested in plant upgrade Option F; and plant reject rates.
the percentage use of superior materials; a company's cumulative spending for
TQM/Six Sigma quality control programs; the use of best practices training; and
expenditures for new styling/features per model.
the size of incentive bonuses paid to workers for defect-free workmanship;
expenditures for best practices training; the age of plants and whether plant
upgrades D and E have been installed; and the durability of its footwear.
the prices paid for standard and superior materials; overall footwear quality; how
many hours of best practices training that workers have been through; and
percentage increases in annual base pay.
how big the incentive payment per non-defective pair is; whether shoes are produced
with 100% standard materials or 100% superior materials, the durability and of its
footwear; and how many models/styles are included in its product line.

Which of the following are the 5 measures on which a company's performance is

judged/scored?

Earnings per share, ROE, stock price, credit rating, and image rating

Earnings per share, ROE, revenues, stock price, and credit rating

Free cash flow, revenues, global market share, EPS, and ROE

Credit rating, revenues, EPS, ROE, and the number of annual dividend increases

Global market share, ROE, net profit, stock price, and free cash flow

Which one of the following is not a factor in determining a company's unit sales and market
share of branded footwear in a particular geographic region?

The number of models/styles in the company's product line

Expenditures for retailer support

S/Q ratings of the company's footwear

The number of retailers stocking the company's footwear brand

Footwear features and footwear durability
Which of the following is/are not among the factors that affect worker productivity?

S/Q ratings and the warranty claim rate on recently-sold footwear

Increases in base pay

Expenditures for best practices training

The size of incentive payments per non-defective pair

How favorably a company's compensation package compares with the industry-

average compensation package

t the end of Year 10, going into Year 11, the company's production capability was
6 million pairs without the use of overtime and 7.5 million pairs with the use of
overtime.
5 million pairs without the use of overtime and 6.25 million pairs with the use of
overtime.
3 million pairs without the use of overtime and 3.6 million pairs with the use of
overtime.
5 million pairs without the use of overtime and 6 million pairs with the use of
overtime.
6 million pairs without the use of overtime and 7.2 million pairs with the use of
overtime.

Which of the following currencies are involved in affecting the operations of your company's
athletic footwear business?

U.S. dollars, Indian rupees, Swiss francs, Argentine pesos, and euros
Brazilian reals, Canadian dollars, Japanese yen, Chinese renminbi, and New Zealand
dollars

U.S. dollars, Singapore dollars, euros, and Brazilian reals

Singapore dollars, South African rand, Chilean pesos, and Turkish lira
 Japanese yen, Mexican pesos, Indian rupees, Canadian dollars, euros, and the
Australian dollar

he company currently has production facilities to make athletic footwear in

North America and Asia-Pacific.

North America and Latin America.

the Middle East and China.

Taiwan, India, Brazil, and Middle East.

Asia-Pacific and Latin America.

Which of the following best describes the materials the company uses to make its footwear?

Waterproof fabrics, rubber, cotton shoelaces, and fiberglass thread

Synthetic fibers, waterproof polyesters, microfibers, rubber, and metal eyelets

Natural and man-made fibers, durable rubber, waterproof fabrics, synthetic fiber
shoelaces, and high-strength threads

Normal-wear and long-wear materials

Standard and superior materials