Question 1

A manufacturing company produces plastic utensils for a particular segment at the lowest possible cost. The company is pursuing a cost?

Options :

A : Leadership strategy

B : Focus strategy

C : Differentiation strategy

D : Containment strategy

Answer: B

Question 2

The degree of financial leverage of CompanyB, totwo decimal places, is

Options :

A : 1.03

B : 1.05

C : 1.12

D : 1.25

Answer: B

Question 3

Multichannel marketing

Options :

A : Is ownership of channels by multiple cooperating firms.

B : Introduces conflict when channels compete for customers.

C : Tends to increase coverage and cost.

D : Improves control by customizing the selling process.

Answer: B

Question 4

A depreciation tax shield is

Options :

A : An after-tax cash outflow.

B : A reduction in income taxes.

C : The cash provided by recording depreciation.

D : The expense caused by depreciation.

Answer: B

Question 5

The following information regarding inventor policy was assembled by the JRJ Corporation. The

company uses a 50- week year in all calculations.

The reorder point is

Options :

A : 3,300 units.

B : 2,100 units.

C : 800 units.

D : 1,300 units.

Answer: B

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