CapSim Quiz Sample QuestionsMultiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. Stock price is a direct function of dividends, EPS, and ______ along with emergency loans? a. debt rating c. book value b. cash on hand d. yield ratio 2. Which criterion is most important in the High-End segment? a. age c. price b. position d. quality 3. On the perceptional map, where is the “sweet/ideal spot” in the High End segment? a. in the center of the circle c. there is no sweet spot in High End b. on the trailing edge of the circle d. on the leading edge of the circle 4. What is one way to lower material costs? a. decrease MTBF c. increase automation b. increase capacity d. none of the above 5. Higher automation leads to lower production costs and has what effect on repositioning a product on the perceptual map? a. makes it more difficult and expensive c. no effect b. makes it easier and cheaper d. eliminates repositioning 6. What is the approximate overall average growth rate for all five segments industry? a. 14% c. 4% b. 19% d. 9% 7. When you sell capacity what percentage of your original investment do you receive? a. 65% c. 50% b. 25% d. 10% 8. One way to finance expansion is through the issuing of bonds. When this happens, your company is charged a _____% brokerage fee for issuing the bonds. a. 2% c. No fee is charged b. 5% d. 7.5% 9. For each point of change in automation, your company is charged ______ per unit of capacity. a. $6.00 c. $4.00 b. $5.00 d. $7.00 10. Which of the following reports can be used to diagnose problems on a product-by-product basis? a. stock market summary c. cash flow statement b. income statement d. balance sheet Awareness . True / False Selling capacity happens immediately. CapSim Quiz Sample Questions 11. True / False If you sell all your capacity. If you or your team decides to introduce a new sensor product. One round prior to product release 3. you will incur etooling costs. Buying capacity takes a year.80 in direct materials per unit. a.000 / $8. True / False All companies in the sensor market start out with a market share of 16%. True / False If you reduce MTBF from 21000 to 14000 (the low end of the range) you save $2. True / False Each new unit of capacity costs $5 per unit for floor space and $4 per unit of automation. What is happening to your market share? Your market share will increase versus your competition because market share is determined (in the simulation) by unit sales / Your market share will be determined by dollar sales we can’t predict what will happen to market share Price guidelines for products remain the same round after round. The promotion budget affects: a. Is usually prepared following the preparation of the strategic plan 2.000.000.10 How much do you save in direct labor per unit if you increase automation from 0 to 1? 20% / $1.000 Changes in capacity and automation happen immediately. If you keep one unit of capacity. when should capacity and automation be purchased? a.600. you per unit? $1. Foundation will sell your remaining inventory for half the average cost of production. what is the total cost? $2. you can sell all inventory at full price.000 / $7. True / False 1.000 If you reduce automation.01 Per Unit For each point of change in automation.400.80 / $2.000 units of capacity at an automation rating of 3. what will it cost you? $14.000 units and you change the automation from 1 to 3. True / False. $6 per unit of floor space The market is growing at 10% per year your unit sales are growing at 20% per year. Gross margin is calculated by subtracting what direct labor and direct materials from unit price.000. True / False If you add 800. True / False If you increase MTBF from 17000 to 23000 (high end of the range) how much will it cost. A firm’s mission statement is usually prepared in significant enough detail to guide all of a firm’s stakeholders in their day to day decision making related to the firm. what is the cost or savings per unit? $6 / $4 If a production line has a capacity to produce 1. Which market segment places the most important on price? a. Traditional. Quality 6. Current Debt. What is a market segment? a. Which of the following are not considered in the Buyer’s Criteria? a. how many assembly lines are there? a. and Size 13. Add a second shift 10. A firm’s value proposition should be developed to reflect the perspective of a. technological. An increase in promotional budgets has: a. Positioning. Age. Which market segment places the most importance on reliability? a. In the Gelle case the competitive strategy that all the members of management appeared to agree was not appropriate for the firm was: a. Board of Directors 12. and competitive environments as conditions. MTBF. A $100 million company with 5 products 11. The 5 market segments learned in the Capstone book are the following: a. economic. Low end. Low End 19. A group of customers with similar purchasing concerns 14. A(n) ____________ examines the social. External Analysis 17. 1 year at least 5. Stock Issues. regulatory. The size segment places more importance on a. A direct one 7. Nonstrategic Decision . 5 line per company 8. How long a product is expected to function 15. The Finance Department can use which of the following methods to acquire capital for company activities? a. Performance. A _________ is one that does not affect the execution of the firm’s competitive strategy. The relationship between promotion and sales budgets and sensor sales is generally… a. Which one of the following is NOT one of the four product characteristics that R&D can set? a. which criteria are most important to them in order of importance? a. Bond Issues and Profits 9. If you purchase production capacity and automation: a. Each management team will take the reins of… a. Diminishing returns over time 23. a. a. Performance 20. At the beginning of the stimulation. Positioning and age 18. CapSim Quiz Sample Questions 4. Price 21. When the practice rounds are over (both individual and team) the simulation will be reset so that real competition can begin among the teams. It is available in the next year 22. High end. What’s the measure for product reliability? a. political. What is the minimum amount of time that it takes to invent a new sensor? a. A “low” Price Product Pricing Strategy 24. How can assemble lines double their capacity? a. If you are marketing to High End customers. Automation 16. a. Unhealthy Debate . In the Gelle case the primary conflict or problem was created by a. and service that differentiate from others in the marketplace a. A _______ is defined by the particular mix of price. A ________ occurs when different members of the organization apply their own decision criteria rather than use a common lens. Competitive Strategy 30. A failure to implement an agreed upon competitive strategy 28. Which financial obligation is best satisfied with Bond Issues? a. product qualities and features. Capital needed for company activities cannot be acquired through: a. One of the tradeoffs of extending your firm’s AR collection terms from net 30 to net 45 will likely be: a. Arbitrarily firing employees 26. Less pressure on the firm’s cash flow 29. CapSim Quiz Sample Questions 25. Paying for increased production capacity 27.