Question 1

6.25 out of 6.25 points

The finance department must raise funds to finance all of the company activities. Check
all that are sources of acquiring capital.
Selected Answers:

Profits
Bond Issues (Long Term Debt)
Current Debt
Stock Issues
Answers:

Profits
Bond Issues (Long Term Debt)
Dividends
Current Debt
Stock Issues
Retiring Stock (Stock Buy Back)
Response Feedback: See page 15, Section 4.4 of the Team Member Guide.
Dividends and Stock Buy Backs will reduce funds.

Question 2
6.25 out of 6.25 points

Banks are willing to loan current debt up to __% of the company's accounts receivable,
plus __% of its inventory
Selected Answer:

b.

75% and 50%

Answers:

a.

50% and 25%

b.

75% and 50%

c.

80% and 20%

d.

20% and 80%

Response Feedback: See page 15, Section 4.4.1 of the Team Member Guide.
.

Question 3

6.25 out of 6.25 points

Assets always equal liabilities plus equity.

Selected Answer:
Answers:

True
True
False

Response Feedback: See page 19, Section 6.1 in the Team Member Guide.

Question 4
6.25 out of 6.25 points

The December Customer Survey Score reports what customers thought about your
product. Assuming it does not run out of inventory, a sensor with the higher score will
outsell a sensor with a lower score.
Selected Answer:
Answers:

True
True
False

Response Feedback: See page 5, Section 3 of the Team Member Guide.

Question 5
6.25 out of 6.25 points

When the forecast is less than the total number if units available for sale, the proforma
income statement will display an inventory carryng cost. The simulation charges an
inventory carrying cost of ______%?
Selected Answer:

c.

12%
Answers:

a.

20%
b.

15%
c.

12%
d.

10%
Response Feedback: See page 23, Sec 10.3 of the Team Member Guide.

Question 6
6.25 out of 6.25 points

The strategy of a Broad Cost Leader

Selected
Answer:

Answers:

a.

maintains a presence in all segments of the

market.
a.

maintains a presence in all segments of the

market.

b.

centers on the High End, Traditional, and Low End

Segments
c.

concentrates primarily on the Traditional and Low End

Segments.
d.

maintains its prices above average.

Response Feedback: See page 24, Section 12.1 of the Team Member Guide.

Question 7
6.25 out of 6.25 points

Products are allowed to move from one assembly line to another.

Selected Answer:
Answers:

False
True
False

Response Feedback: See page 13, Section 4.3 of the Team Member Guide.

Question 8
6.25 out of 6.25 points

How do you discontinue a product without selling it at a low

price?
Selecte
d
Answer
:

Sell all but one unit

of capacity

Answer
s:

Reduce the forecast to on-hand inventory and discontinue the

production.
Sell all but one unit
of capacity
Reduce the forecast to
zero.
Sell all the capacity.

Response Feedback:

See page 14 Section 4.3.2. of the Team Member Guide.

Question 9
6.25 out of 6.25 points

The 5 market segments learned in the Capstone book are the following:
Selected

c.

Answer:

Traditional, Low End, High End, Performance, and Size

Answers:

a.

High Beginning, Low Beginning, Performance, Size, and Medium

Low
b.

Performance, Size, Reliability, Price, Traditional, and Low End

c.

Traditional, Low End, High End, Performance, and Size

d.

None of the above

Response Feedback: See page 3, Section 2 of the Team Member Guide.

Question 10
6.25 out of 6.25 points

The customer buying criteria tables rank the customer criteria within each
segment. Which remain the same year after
year?
Selected Answer:

e.

both Age and Reliability (MTBF)

Answers:

a.

Ideal Position
b.

Price
c.

Age
d.

Reliability (MTBF)
e.

both Age and Reliability (MTBF)

Response Feedback: See page 5, Section 2.2 and page 18 of the Team Member Guide.

Question 11
6.25 out of 6.25 points

How much do segment prices fall each year?

Selected
Answer:

a.
$0.50

Answers:

a.
$0.50
b.

$1.00
c.

$0.75
d.

Segment price changes vary depending upon relative market

demand
e.

Prices remain constant in each segment

Response Feedback: See page 7, Section 3.1.2 of the Team Member Guide.

Question 12
6.25 out of 6.25 points

Bondholders are willing to lend amounts up to____% of the value of the

companys plant and equipment.
Selected Answer:

c.

80%
Answers:

a.

50%
b.

75%
c.

80%
d.

20%
Response Feedback: See page 15, Section 4.4.2 of the Team Member Guide.

Question 13
6.25 out of 6.25 points

When the practice rounds are over (both individual and team) the simulation will
be reset so that real competition can begin among the teams; each management
team will take the reins of
Selected Answer:

d.

$100 million company with 5 product lines

Answers:

a.

$40 million company with 5 product lines

b.

$80 million company with 4 product lines

c.

$100 million company with 4 product lines

d.

$100 million company with 5 product lines

e.

$140 million company with 5 product lines

Response Feedback: Correct
This subject was covered in the first class and the first class PowerPoint slides.

Question 14
6.25 out of 6.25 points
Sensors priced $1.00 above or below th segment range lose about how much of their customer survey
score?
Selected Answer:

d.

20%
Answers:

a.
5%
b.

10%
c.

15%
d.

20%
e.

30%
Response Feedback: Correct
See page 7, Section 3.1.2 of the Capstone Team Member Guide.

Question 15
6.25 out of 6.25 points
Refer to the Capstone Industry Conditions Report in the Capsim Website for questions 15 and 16.
The Traditional segment's ideal spot is
Selected Answer:

c.
near the center of its circle

Answers:

a.
near the upper-left corner if its circle
b.
near the lower-right of its circle
c.
near the center of its circle
d.
near the lower-left of its circle
e.
near the upper-right of its circle

Response Feedback: See the Industry Conditions Report, Section 3.1

Question 16
6.25 out of 6.25 points
Refer to the Capstone Industry Conditions Report in the Capsim Website for questions 15 and 16.
Which market segment places the most importance in high reliability and cutting edge performance
technology?
Selected Answer:

d.
Performance

Answers:

a.
Traditional
b.
Low End
c.
High End
d.
Performance
e.
Size

Response Feedback: See the Industry Conditions Report, Section 3.4.