General Education

UOP BUS475 Week 5 Assignment Capstone Final Examination Part 2 SET 1

BUS475 Integrated Business Topics

Week 5 Assignment

Capstone Final Examination Part 2 SET 1

8 Exam Sets Included! Includes Answers with Explanation.

NOTE: Use Control+F to quickly search through document for answers.

Complete the Capstone Final Examination, Part 2. You are allowed one attempt to complete the examination, which is timed and must be completed in 3 hours. Results are auto-graded and sent to your instructor.

Note: Part 2 of the BUS/475 final consists of 50 questions covering content from this course and prior courses in the BSB program, so be sure to allow enough time to complete the entire examination.

Note: The automated final exam was designed in Google Chrome and is best viewed in the latest version of the browser. If you do not use the latest version of Google Chrome to view and complete the automated final exam, you may not be able to view the entire exam content. If you do not have the most current version of Google Chrome, download the browser before you enter the exam.

1. Mirabel Inc. has recently ventured into the home cleaning supplies market with its very own floor cleaner, Flofix, which does not contain any harmful chemicals such as phenol. The company has used aggressive marketing strategies and innovative advertising campaigns to promote the product. The company’s revenue analysis shows that the sales for the product are increasing steadily. However, when the market survey team of the company surveyed a large number of consumers in the target market, the consumers mentioned that they had not switched over to the new brand of floor cleaner.

Which of the following, if true, best explains how the sales for the company went up in spite of consumers not purchasing the product?

2. After a series of thefts in an organization, the management is considering whether or not to install cameras inside the office. The management is torn between violating the privacy of employees and preventing future thefts from taking place. This scenario illustrates an __________.

3. Colneith Corp. is a pharmaceutical firm that mainly produces drugs for Alzheimer’s disease. The Medical Association of Zachary Islands conducted a study on the effectiveness of the firm’s drugs and found that multiple dosages of drugs were fatal. This discovery would most likely lead to:

4. LaBelle, a famous cosmetic brand, introduces a new skin cleanser. The company pays bloggers to write positive reviews about the product. The consumers who follow these blogs assume that the bloggers are sharing their personal experiences and decide to try the product. They are unaware that the blogs are part of a marketing campaign. After a few days of using the product, they complain of rashes and allergies. The bloggers can be charged with __________.

5. Sam’s stores, a popular retail store, uses barcode scanners to scan each product that it sells. The data generated from the scanners are saved in a database. The database is updated every time a product is scanned and sold. This computer-based information system helps managers access and analyze sales data. Which of the following systems is the store using for its business?

6. The government of Seronia is deeply concerned about the rate of obesity in the country. It has framed a policy that requires food and beverage manufacturers to be taxed according to the sugar and fat content in their products. This will make high-sugar and high-fat products more expensive for consumers. The government believes that this policy will surely benefit the health of Seronian citizens.

Which of the following statements, if true, would undermine the government’s argument?

7. Kwalkon Computing released a new software update for their calendar app. The update synchronizes both personal and business calendars seamlessly. The update has all the relevant bug fixes and promises to make the app work faster. Since there have been no recent complaints about the software, the update must have solved all the customers’ issues.

Which of the following questions would be most relevant in evaluating the argument?

8. Zuckain Corp. has issued a 10-year coupon bond. The bond is issued at an annual coupon rate of 14%. The face value of the bond is $1,500, and the bond is currently trading at $1,232.56. Calculate the bond’s yield to maturity.

9. A shift in the demand curve for pretzels increases the price of pretzels from $1.25 to $1.75 and its quantity demanded from 30 million to 35 million. The price elasticity of demand for pretzels is _____.

10. Rosa Maria attends an interview for a sales manager position at Pixxels Inc. As part of the interview process, she is asked to reveal personal information. The company gets Rosa’s consent to share the information with a security company for background verification. Which of the following actions, if taken by the security company, will be unethical?

11. Dupon Inc., a leading manufacturer of handheld game consoles, decides to enter the global marketplace. It decides to sell its products directly in a foreign country. The foreign government denies permission to the company on the grounds of protecting domestic manufacturers. However, the government is willing to change its decision if the company contributes to local employment. Which of the following strategies of entering the foreign market will present the least risk to the company while also meeting the government’s condition?

12. FarmFresh Inc. partners with multiple retailers to sell its organic products. If stocks fall below a product’s threshold, the retail managers raise purchase orders to FarmFresh. It takes two days for FarmFresh to process the orders and dispatch the products. The process proves to be ineffective when the retail stores do not have the stock to meet a sudden increase in demand. How can supply chain management (SCM) systems solve this problem and make the process more efficient?

13. Mark is expected to receive $950 at the end of two years. Calculate the present value of this amount if the discount rate is 6%.

14. Rodriquez works as a scriptwriter in an advertising agency. He has been assigned the task of developing a script for a television commercial. He prepares a rough draft of the script and submits it to his manager, Carl. Carl reads the script but derives a different meaning from it than what Rodriquez intended. According to the basic communication model, which of the following will be the next step?

15. Irvin's Ice Creams, a popular chain of ice cream parlors present only in the United States, is looking for opportunities to grow its business. If the firm conducts a SWOT analysis of its performance, which of the following would be categorized as a threat?

16. Rikan Inc.'s credit sales for the year 2016 are $5,000,000, and its gross profit is $1,500,000. The company’s average inventories are $595,000. Its average accounts receivable is $750,000 and average accounts payable is $640,000. From this information, calculate the company’s cash cycle. (Round the answer to one decimal.)

17. When Ronike Ltd. decided to change its logo, it encouraged its employees to get involved in the decision-making process. Employees were asked to engage in brainstorming sessions by forming groups and working together in teams. Which of the following is a likely outcome of their teamwork?

18. Managing Director: Our business has expanded over the past couple of years. The profit margin and revenue earned have both gone up. On careful analysis of our client base, we have found that all of our clients belong to the same culture as us. They also hold ethical values that are similar to ours. Based on this finding, it would be best if our company stops training our employees on cultural sensitivity and instead gives our employees specialized training in market research analysis.

The Managing Director’s argument is flawed because it:

19. Calculate the net working capital from the information given below. The figures are in millions of dollars.

Cash and cash equivalents      $ 90

Inventories      450

Accounts receivable    255

Fixed assets     1,080

Short-term investments           145

Goodwill         90

Accounts payable        220

Long-term borrowings            660

Short-term borrowings            85

Interest payable           115

20. Cream & Fresh Ice Creams pays bloggers to write positive reviews about its ice creams. Readers who are interested in the product read these reviews and share the link with their friends who further share the reviews with more people. Some readers try the ice creams and add their own comments to the blog. Which of the following strategies is the company using to promote its products?

21. In 2005, Susana purchased a 7-year zero coupon bond for $967.23. The face value of the bond was $1,200. Calculate the capital gain on this bond in 2006.

22. Dupon Inc. is a leading manufacturer of handheld game consoles. Each console manufactured by the firm has a different game. Although the video game industry faced a sharp decline in demand with the introduction of mobile games, Dupon still holds a significant market share for handheld games compared to its competitors. To hold the market share, Dupon provides discounts to customers purchasing more than one console. Which of the following stages of the product life cycle is Dupon’s products going through?

23. Michael deposits $35,000 today in his bank account. Calculate the approximate amount he will have at the end of six years if interest is 10% per year and is compounded semiannually.

24. Five years ago, Rigatani Corp. introduced its new energy drink, Energize. According to recent market surveys, the product is in its decline stage. At the same time Energize was introduced, Panne Inc. introduced White Unicorn, another new energy drink. Therefore, White Unicorn must also be in its decline stage now.

Which of the following is an assumption on which the conclusion is based?

25. In 2006, Dexel Electronics Inc. introduced audio systems in the market for electronic gadgets. Because of an increase in sales volume as well as a growing proportion of repeat purchasers, the company has now upgraded the old version of audio systems by introducing new features. Given this information, in which stage of the product life cycle does Dexel Electronics lie?

26, From the following information, calculate the net increase in cash.

Earnings before interest and taxes      $52,000

Depreciation expense  7,800

Decrease in prepaid expenses 1,700

Increase in accounts receivable          12,880

Purchase of machinery           32,700

Payment of dividends 11,300

Increase in bank borrowings   8,600

27. Irvin's Ice Creams, a popular chain of ice cream parlors located only in the United States, is looking for opportunities to grow its business. Which of the following suggestions, if provided by the company’s marketing manager, would present the least amount of risk to the firm?

28. LaBelle, a famous cosmetic brand, introduces a new skin cleanser. Initially, the product does extremely well and reaps huge profits for the company. After using the product for few months, consumers having acne complain of rashes and allergies. An external chemical agency accuses that the company used a harsh chemical that causes allergies to people with acne, and it did not include it on the ingredients list displayed on the product’s label. These harsh chemicals did not cause allergies to people with normal skin. When enquired, the company’s CEO confesses that the products would have not done so well if they had listed the chemical. The company can be charged with __________.

29. Which of the following alternatives will give the lowest present value?

30. Marketers at Cream & Fresh Ice Creams update the company’s web site and online journals regularly with information about new ice creams. Readers who are interested in the articles updated on the company’s web site and online journals share the links with their friends who further share it with more people. Some readers try the ice creams and add their own comments to the web site and online journals. Which of the following strategies is the company using to promote its products?

31. TwissData Corp. is an electronics firm based in Damiya that manufactures motherboards. Because of a rapid growth in the personal computing industry, TwissData Corp. decides to produce personal desktops and laptops instead of motherboards. By doing so, which type of market-product strategy has TwissData Corp. applied?

32. Tony holds 350 shares of a company’s stock. At the end of 2015, the market price of each share was $32. During the year 2016, the company pays $2.25 in dividends per share. At the end of 2016, the company’s stock is priced at $39.50. Calculate the percentage return for holding the company’s stock during the year 2016. (Round the answer to one decimal place.)

33. Hailey's Food Inc. sells fish sticks at $3.00 a box. The government passes a law requiring sellers of food products to pay $0.50 as tax for each product they sell. Hailey's has to pay the government $0.50 for every box of fish sticks it sells. The company decides to trade down to compensate for the tax. Which of the following is a likely outcome of the company’s decision?

34. Calculate the cost of preferred stock from the information given below:

Annual dividend on preferred stock   $ 13.50

Price    110.00

Flotation cost  6.00

35. The owners of Brizzels’ Food Truck send live notifications to their customers when their truck is close to the customers’ locations. Their strategy was in response to a customer’s blog post about having to wait for long hours till the truck arrives. Which of the following strategies does this scenario illustrate?

36. The intensive 45-day training program for new employees at Zed Inc. requires trainees to take several tests that trainers at Zed Inc. have to grade. Recently, there has been a 30% increase in hiring. With the present number of trainers, it is not possible to finish grading all the tests in time.

HR manager: The training team should transfer all the tests for the trainees to software that will grade them automatically. Our hiring budget will not allow the hiring of additional people to manage the increased number of trainees. Using auto-grading software will not require any funds from our hiring budget.

Which of the following is assumed by the HR manager?

37. A popular hypermarket chain came under criticism for failing to protect the e-mail addresses and credit card details of 50,000 customers. CloudCom Inc., a web services company, identified that the lapse was because of a worm that had breached the hypermarket’s internal servers through an unauthorized e-mail, and that the anti-malware system failed to catch the worm. Which of the following actions should CloudCom take to restrict such malwares from entering the hypermarket’s internal network?

38. General Pharmacy’s stock has a beta of 1.8 and an expected return of 14%, and Sicoras Corp.’s stock has a beta of 1.5 and an expected return of 16.2%. Assuming capital-asset pricing model holds, calculate the return on the market portfolio.

39. The capital structure of Wilken Corporation is given below.

Calculate the weighted average cost of capital (WACC).

Debt    35%

Preferred stock            15%

Common equity          50%

Additional details are as follows:

Bond yield to maturity            10%

Dividend of preferred stock    $9.50

Price of preferred stock          $100

Flotation cost of preferred stock         $5

Dividend of common stock    $2.00

Price of common stock           $40

Growth rate of common stock            12%

Corporate tax rate       30%

40. Claudia is a team lead in an organization. One day at work, a team member, Marc, informs Claudia that he wants to speak to her about the problems that he faces at work. Marc tells her that he is being treated unfairly at work and that his colleagues often ridicule him because of his ethnicity. He goes on to say that his disturbed state of mind has caused a dip in the productivity and quality of his work. Claudia does not interrupt him when he is speaking and encourages him to talk openly. She also lets him know that she understands his situation and that his feelings are valid. In this scenario, Claudia is primarily engaged in __________.

41. Robert, an ardent blogger, is approached by the marketing manager of LaBelle, a famous cosmetic brand, to write positive reviews about the company’s products. Robert knows that the company’s products cause allergic reactions and to write positive reviews about the products would be unethical. Which of the following decisions will be considered an ethical lapse?

42. Truno Corp. plans to purchase new project management software. There are three available choices in the market: Telpro, Morse, and Verla.

Systems manager: I have compared the three available choices. All three choices are similar in quality, features, and usability. However, Morse