STR 581 CAPSTONE WEEK 1-WEEK 6

WEEK 1

1. Which of these is true about Sarbanes-Oxley Act of 2002?

a. The CEO and CFO must verify every report containing the company’s financial statements.
b. The directors and executive officers are required to trade the company’s 401(k) plan, profit sharing plan and retirement plan during the blackout period 
c. Companies are required to extend personal loans to executives and directors.
d. The act requires that the audit committee must be composed entirely of inside officers.

2. For the past 28 years, ABC, Inc. has made a significant investment of time, money, and other resources to increase the literacy rate in adult Americans. This represents which of these principles of successful collaborative social initiatives?

a. Assemble and value the total package of benefits.
b. Weigh government influence.
c. Identify a long-term durable mission.
d. Leverage core capabilities.

3. Of the three levels of strategy that are part of an organizations decision-making hierarchy, which level develops annual objectives and short-term strategies in such areas as production, operations, and research and development, finance and accounting, marketing, and human relations?

a. Management
b. Business
c. Corporate
d. Functional

4. Judging the appropriateness of a particular action based on a goal to provide the greatest good for the greatest number of people is what ethics approach?

a. Business ethics approach
b. Utilitarian approach
c. Social justice approach
d. Moral rights approach

5. The most critical quality of ethical decision making is

a. economics

b. expeditions
c. objectivity
d. consistency

WEEK 2

1. The concept that some leadership attributes will work in some situations but not in others can be described by the

Behavioural theory

Leadership effectiveness theory

Tactical theory

Contingency theory

 2. Sam Meyers manages a telemarketing call center. He has 20 employees working for him who are displeased with the way he yells and threatens to terminate them for what they see as small issues. Which kind of power is Sam using to get the job done?

Referent power

Reward power

Coercive power

Legitimate power

 3. Which of the following is considered an organizational blueprint, which prescribes the quantity and time frame for when each end product will be assembled?

WBS (Work Breakdown Structure)

ERP (Enterprise Resource Planning)

MRP (Material Requirements Plan)

MPS (Master Production Schedule)

 4. In performing a SWOT analysis, which of the following would be considered as a threat?

Competitors

Lack of a strategic plan

Increased product demand

Recognized brand

5. During the implementation of a project, which of the following should be the primary focus of a consulting firm?

The correct project software

Application of the learning curve theory

Tools and materials availability

People management skills

WEEK 3

1. The structure of a simple organization

Limits the owner’s(s’) control

Minimizes the owner’s(s’) control

Slightly increases the owner’s(s’) control

Maximizes the owner’s(s’) control

2 . Companies committed to this process attempt to isolate and identify where their costs or outcomes are out of line with what they identify as the best practices of competitors or other companies or organizations that undertake similar tasks.

Benchmarking

Imitating

Disaggregating

Vertical integration

3. The first step of this type of analysis involves a firm determining what their customers value and why they value it.

 Value chain analysis

SWOT analysis

Three circles analysis

Resource-based view

4. This type of organizational structure combines the advantages of functional specialization with the advantages of product-project specialization.

 Divisional organization

Product-team structure

Specialization business

Matrix structure

5. Today, global means

Using resources from other markets

Getting resources and talent from around the globe and selling worldwide

Selling goods in overseas markets

Locating operations in numerous countries

WEEK 4

1. Which of the following financial statements is concerned with the company at a point in time?

income statement

statement of cash flows

retained earnings statement

balance sheet

 2. A cost which remains constant per unit at various levels of activity is a:

fixed cost

mixed cost

variable cost

manufacturing cost

 3. M&M Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock.

If Dynamo wishes to change its capital structure from 75 percent equity to 60 percent equity and use the debt proceeds to pay a special dividend to shareholders, how much debt should they use?

$600

$375

$225

$321

 4. Serox stock was selling for $20 two years ago. The stock sold for $25 one year ago, and it is currently selling for $28.  Serox pays a $1.10 dividend per year.  What was the rate of return for owning Serox in the most recent year? (Round to the nearest percent.)

 32%

16%

12%

40%

 5. The process of evaluating financial data that change under alternative courses of action is called:

contribution margin analysis

cost-benefit analysis

double entry analysis

incremental analysis

 6. What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects?

 the discounted payback

the profitability index

the internal rate of return

the modified internal rate of return

STR WEEK 5

1. This is concerned with tracking a strategy as it is being implemented, detecting problems or changes in its underlying premises, and making necessary adjustments.

Strategy evaluation

Strategic implementation

Strategic control

Strategic decision-making

2. Strategic surveillance must be kept

as focused as possible

as unfocused as possible

as fast as possible

internal

3. This, called kaizen in Japanese, is the process of relentlessly trying to find ways to improve and enhance a company’s products and processes from design through assembly, sales, and service.

CCC21

Incremental innovation

Continuous improvement

Six Sigma

4. CCC21 stands for

Competitive cost competency in the 21st century

Construction of cost competitiveness for the 21st century

Cost chain competition for the 21st century

Continuous cost competitiveness in the 21st century

5. The DMAIC (define, measure, analyze, improve, and control) process is relevant to

CCC21

Balanced scorecard

Strategic matrix analysis

Six Sigma

6. This idea factor involves following demographic and other broad trends and trying to develop ideas that may be relevant and useful.

Mental invention

Trend following

Market research

Solution spotting

WEEK 6

1. The ability to meet humanity’s needs without harming future generations is now a top priority in most corporate agenda

ethics

rules

sustainability 

righteousness

 2. This is a historically popular technique through which managers create a quick overview of a company’s strategic situation—it is based on achieving a sound fit between internal resources and the external situation.

External analysis

Value chain analysis

Internal analysis

SWOT analysis 

 3. New-to-the-world products are ________.

new products that create an entirely new market

existing products that are targeted to new geographical markets

low-cost products designed to obtain an edge in highly competitive markets

new product enhancements that supplement established products

 4. Prestige LLC, a small company that manufactures specialty cereals and energy bars, wants to launch a “green marketing” program in response to heightened consumer awareness about environmental issues. What should the company do to maximize the program’s chances of being successful?

Demonstrate that the products will benefit both customers and the society in the long-term. 

Focus on the efforts and costs incurred by the company to bring these “green” products to consumers.

Emphasize benefits to the consumer rather than environmental benefits.

Explain the rules and regulations laid out by governmental agencies to protect the environment.

 5. BMW’s “The ultimate driving machine,” American Express’ “Don’t leave home without it,” New York Times’ “All the news that’s fit to print,” and AT&T’s “Reach out and touch someone” are all examples of ________.

brand personality

brand slogan 

brand vision

brand mission

 6. A company that attempts to lead its industry in price and convenience by pursuing a focus on lean and efficient operations is pursuing what strategy?

Product leadership

Operational excellence 

Customer intimacy

Low-cost leadership