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Question 1 options:
e)bond ratings remain constant
An increase in promotional budgets has:
Question 2 options:
a)increasing returns over time
b)level returns over time
c)diminishing returns starting around $2 million
d)diminishing returns starting around $15 million, then increasing returns over time
e)returns to advertising expenditures follow a U-shaped function
Which of the following statements is true about MTBF?
Question 3 options:
a)Material costs increase $0.40 for every additional 1,000 hours of reliability.
b)Customers prefer products that are above the expected range.
c)Customers ignore reliability above the expected range.
d)Products with an MTBF 1,000 hours below the expected range lose approximately 50% of their customer survey score.
e)All of the above are true statements.
Which of the following are true about bonds?
Question 4 options:
a)As a general rule, your team should never issue bonds.
b)Bondholders will lend total amounts up to 20% of the value of your plant and equipment.
c)Bondholders will lend total amounts up to 75% of the value of your plant and equipment.
d)Bondholders will lend total amounts up to 90% of the value of your plant and equipment.
e)Bondholders will lend total amounts up to 80% of the value of your plant and equipment.
How much do segment prices fall each year?
Question 5 options:
d)Segment price changes vary depending upon relative market demand
e)Prices remain constant in each segment
If you or your team decides to introduce a new sensor product, when should capacity and automation be purchased?
Question 6 options:
a)Two years or rounds prior to product release
b)One year or round prior to product release
c)The year or round of product release
d)The year or round after product release
e)Purchase of capacity and automation is not necessary for new product release
Which one of the following is NOT one of the four product characteristics that R&D can set?
Question 7 options:
If your team has to take an emergency loan…
Question 8 options:
a)You will pay two years’ worth of current debt interest.
b)You will pay a 7.5% penalty fee on top of the current debt interest.
c)You will pay a 2% penalty fee on top of the current debt interest.
d)The amount you pay will be determined by your team’s outstanding stock.
e)None of the above
If your short-term interest rate (the rate on your current debt) is 12.1%, then your bond rate (the rate on your long-term debt) is:
Question 9 options:
a)10.7% (14% lower than the current debt rate)
b)12.1% (the current debt rate)
c)13.5% (1.4% higher than the current debt rate)
d)6.05% (one-half the current debt rate)
e)12.0% (one tenth percent less than the current debt rate)
What can you do to reach full capacity (i.e., raise capacity levels to 200%) for each of your plants?
Question 10 options:
a)Speed up the production by automating
b)Add a second shift
c)Double the material available to the line
d)Build more assembly lines
e)No matter what you do, a plant will never reach full capacity
Which statement is true about R&D?
Question 11 options:
a)Project lengths will increase when the company puts two or more products into production.
b)A six month project will cost $1,000,000.
c)Repositioning a product will likely have no effect on material costs.
d)It is best that your repositioning projects finish 3 years out.
If you purchase production capacity and automation:
Question 12 options:
a)it is available immediately
b)it is available in 6 months
c)it is available in the next year
d)it is available when you need it
e)none of the above
The 5 market segments learned in the Capstone® team member guide are:
Question 13 options:
a)High Beginning, Low Beginning, Performance, Size, and Medium Low
b)Performance, Size, Reliability, Price, Traditional, and Low End
c)High End, Low End, Traditional, Performance, and Size
d)End, High Low, Traditional, Reliability, and Size
e)none of the above
If your company has a sales budget of $3 million and drops it to zero, in that year…
Question 14 options:
a)accessibility will drop by $1 million
b)awareness will drop to zero
c)accessibility will drop by 33%
d)sales will drop to zero
e)all of the above
A product priced $1 above or below the segment price range loses approximately how much of its customer survey score?
Question 15 options: