Name two characteristics of high quality information
Timeliness, Accuracy, Relevance
100
What type of auditor's opinion is a positive one?
Unqualified opinion
Adverse, Disclaimer and qualified (NOT!)
200
The promotion mix includes Mass Selling, Sales Promotion and....
Personal selling
200
Sasha and Zoe work together in Starbucks. (That's why he always comes in with starbucks 10 minutes late!) On average either of them can make a cup of coffee in 1.5 hours. (They're reallllyy slow and they fight!) Assuming they both work for 18 hours a day, how many coffees can they make in a day?
24 cups (Don't go there for your coffee!)
200
What is the total present value of $80 received in one year, $60 received in four years and $720 in six years if the discount rate is 8.25%
$565.07 (Do each calculation individually!)
200
When an industry has many undifferentiated participant there tends to be ----- rivalry among the participants increasing profitability
MORE INTENSEEE (Intense like Larry during Q & A)
200
TJ's Hair Salon Inc's owner's equity increased by $4000. If paid in capital increased by $5000 and $2000 in dividends were declared and paid, net incoem for the year was:
$1000
Increase in PIC is cash inflow +5000, -2000 dividends is outflow and equity increased by 4000+. Cash flow increased by 1000+
300
One person from each team, get up - draw and label the product life cycle!
Introduction - Growth - Maturity - Decline
300
Refer to chart: What is the capacity per hour for the McD's burger process?
100 burgas an hour
300
Operating Leverage is? What does it tell you about the company?
CM/EBIT - Tells you the amount of variable and fixed costs.
300
Which is the most difficult to estimate (internal failure cost, external failure cost, prevention cost or appraisal cost)
External Failure!
300
Expenses that remain the same over a wide range of quanitities produced
Fixed costs
400
A firm develops a substitute for a hand calculator. The product is faster, more accurate and easier to use than anything else in the market place. The firm prices the product at half of the price for the older technology. This is an example of
Penetration pricing!
400
If the process is operating at capacity, what is the average capacity utilization for stage 1?
Between 80 and 85%
400
Griner's Coke Company is in the business of producing and selling COCA COLA. GCC has an ROE of 30%, a ROS of 10% and has 2x the total liabilities as equity. GCC's asset turnover ratio is:
1.0!
30% = 10% * X * 3 (Total assets must be total liabilities plus equity)/1
400
As the dollar weakens against other major work curriences the competitiveness in the US
increases
400
Which is a source of cash? *Select all that apply
A Sale of fixed assets @ price below book value
B Sale of fixed assets @ price above book value
C Decrease in long term debt
D Increase in Accounts Receivable
A + B
500
If a retailer sells a lawnmower for $165 and had market it up by 20%, the retailer paid how much?
$137.50
500
If a worker were removed from stage 2 and moved to stage 4, what would be the effect on process capacity?
Capacity would decrease by 10%
500
What does a total asset turnover of 1.5 times mean?
For each $1 of total assets, the firm generated $1.50 in sales
Revenue/Assets
500
An industry faces decreased profitability when....
Its customers might backward integrate
500
What's the basic formula for cash flow for operating activities?
Net Income + Depreciation + Change in Current Liabilities - Change in Current Assets