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Quiz 2
1. The industry-low, industry-average, and industry-high benchmarks on pp.
6-7 each issue of the Camera & Drone Journal.
KEY: C

2. If a company reports operating profit of $70 million, earns net income of

$50 in Year8, has 20 million shares of common stock outstanding, pays a
dividend of $1.50 per share, and has annual interest costs of $15 million –
all in Year 8, then….
KEY: B
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3. Which one of the following is not a way to improve the P/Q rating of a
company’s brand of ACC?
KEY: C

4. One of the benefits of spending sizable sums of money for social

responsibility initiatives and good corporate citizenship over a multi-year
period is
KEY: E
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5. Which on of the following actions hepls increase a company’s EPS?

KEY: B

6. Which one of the following results from the latest decision round is
LEAST important in providing guidance to company managers in making
strategic moves and decisions to improve their company’s
competitiveness and rank among the top-performing….?
KEY:E
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7. Which of the following is not an action company co-managers can take to

help meet or beat the investor-expected increases in the company’stock
price in upcoming yeas?
KEY: D

8. Which one of the following actions does not result in higher levels of
PAT productivity in assembling cameras or drones?
KEY: D
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9. Given the following Income

Statement for Year 9 and given
that the formula for calculating
a company’s interest coverage
ratio is descibed in the Help
section for p.5 of the Camera &
Drone Journal.
Based on the above income
statement data and assuming
that a compaby has 20 million
shares…, the company’s
interest coverage ratio and EPS
are?
KEY: B
10. Given the following Year 9 selected balance sheet data:
Based on the above fingures and the definition of the debt: equity
percentages presented in the Help section for p.5 of the Camera and
Drone Journal, the company’s debt: equity percentages and its current
ratio are?
KEY: A
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11.The makers of action-capture cameras have a strong incentive to sell their

camera models to camera retailers in Europe Afnca at higher average
wholesale prices than the average wholesale prices charged to camera
retailers in the Asia-Pacific region if
KEY: D

12. As explained in the Help section for the Workforce Compensation,

Training, and Product Assembly decision screen, if (1) a company pays a
drone PAT member an annual base wage of $24,000, an $800 year-end
bonus for perfect attendance, and provides a company-paid annual fringe
benefits package worth $3,200, (2) a PAT is paid a $4 assembly quality
incentive per UAV drone assembled that is equally divided among 4 PAT
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members, and (3) a 4-person drone PAT assembles 1500 drones per year,
then
KEY: B

13.Which one of the following actions helps increase a company's image

rating/brand reputation?
KEY: E

14. Given the following data from a Comparative Competitive Efforts page
in the CIR
Based on the above data for your company, which of the following
statements is false?
KEY:C
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15. Which of the following is not an action company co-managers can take
that will help the company meet or beat the investor-expected ROE
targets in upcoming years?
KEY:

16. Which one of the following is neither an advantage or disadvantage of

shifting to robot-assisted assembly methods for UAV drones?
KEY: E
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17. A company's managers should almost always give serious consideration

to making significant adjustments in its camera/drone strategies and
competitive approaches when
KEY: A

18. Which of the following is an action company co-managers should

seriously consider in trying to improve the company's credit rating? (The
financial measure used in determining company credit ratings are
discussed in the Help document associated with page 5 of the Camera &
Drone Journal.)
KEY:E
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19.Which one of the following is unlikely to be an attractive and effective

way to reduce the design, assembly, marketing, and other costs of UAV
drones and help achieve a sizable competitive advantage over rival
companies based on lower overall costs per UAV drone sold?
KEY: D

20. Given the following data from a recent Comparative Competitive Efforts
page in the CIR
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Based on the above data for your company, which of the following
statements is false?
Key: C