2.A distressed firm uses excessive inventory to solve its business problems. Which of the following is the most appropriate "lean" approach to reverse the downward spiral of this distressed firm?

A. Increase delivery lead time

B. Institute statistical process control

C. Paring down inventories gradually

D. Stimulating customer demand

3.A mutual fund company identifies a group of current clients with investable assets of more than $500K. The company then segments the group based on income, net worth, and financial assets. Which of the following types of segmentation is the firm using?

a. Usage-based

b. Demographic

c. Psychographic

d. Benefits-based

4.A strategic change was made in the hiring of personnel at a company. Subsequently, the direct labor rate variance for the company is $150 unfavorable, but the direct labor efficiency variance is $60 favorable. What might cause this combo of variances?

A. Early retirement packages were offered to older, highly paid workers.

B. The company hired better trained, more skilled workers, but paid them a higher hourly wage.

C. The company began an internship program for college students with no experience.

D. The company switched to leasing temporary workers instead of using permanent workers

5.A fixed income portfolio manager has just received an exclusive forecast calling for a significant decline in inflation. The most appropriate action for the portfolio manager to take in response to the forecasted decline in inflation is to

A. Shorten the maturity of the portfolio

B. Lengthen the maturity of the portfolio

C. Move a greater portion of the portfolio into money market instruments

D. Rebalance the portfolio with convertible securities

7.The Gemini Promotions Company manufactures and markets a wide variety of gifts, awards, and promotional items for all occasions. The business strategy requires high volume. low price, customization, and quick delivery. Which product-design approach best fits:

a. Robust design

b. Mass customization

c. Concurrent engineering

d. Design for manufacturability

9.To calculate the theoretical expected equity return using the Gordon growth model, the following pieces of information are required: the annual dividend amount, the current stock price, and...

a. company's tax rate

b. overall risk-free rate

c. dividend payout percentage

d. company's growth rate in earnings and dividends

10.All of the following statements regarding organizational conflict are supported by evidence from research EXCEPT:

A. Good conflict generally arises from tasks, while bad conflict is typically base on relationships

B. Task conflict in team contexts is generally more productive later in the team process rather than earlier

C. While potentially positive, even task conflict in excess can have negative team outcomes.

D. When conflict arises and how it is addressed by leaders has been correlated with important outcomes.

11.Company ZC decided to substantially alter the job scope and description of all middle managers. Over the holiday season at the end of the current year, the company informed the managers that the changes would be instituted at the start of the new year. After the new year, HR reported a decline in productivity, job satisfaction, and morale. Company ZC committed which error according to Lewin's change theory:

a. Failure to start with a pilot project

b. Failure to allow managers an unfreeze transition period to understand changes

c. Failure to account for the refreeze transition period for mangers to embrace changes

d. Failure to wait until after the holiday season to change

13.n general, when compared with firms with high business risk, firms with a low degree of business risk, such as electric utilities, are more likely to have a capital structure with more:

a. debt

b. equity

c. tax expense

d. marketable securities

14.Sampling is often used in marketing research because of what:

a. It achieves more accurate research results

b. It reduces the cost of the research

c. It gives respondents anonymity

d. It ensures that all research questions are addressed

15.During the month of July, SETCO experienced a sharp, unexpected decline in the cost of one of its direct materials. The firm significantly increase its level of production because it was able to lower its selling price and sell more products. If SETCO uses a standard cost system properly, what would be the effect of the decrease in raw material price and the increase in the level of production on SETCO's material variances?

Material Price Variance Material Quantity Variance

A. Favorable Unaffected

B. Favorable Favorable

C. Favorable Unfavorable

D. Unfavorable Unfavorable