Marketing and Current Debt

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CAPSIM Quiz (done individually)
Due Tuesday, September 11th at beginning of class
number answers only & signed honor code

1. If you or your team decides to introduce a new sensor product, when should capacity and automation be purchased? 1. Two years or rounds prior to product release
2. One round prior to product release
3. The round of product release
4. The round after product release
5. Purchase of capacity and automation is not necessary for new product release 2. The promotion budget affects:
1. awareness
2. brand equity
3. performance
4. size
5. none of the above
3. What is the minimum amount of time that it takes to invent a new sensor? 1. 3 months
2. 6 months
3. 1 year at least
4. 2 years at least
5. 5 years or more
4. Which one of the following is NOT one of the four product characteristics that R&D can set? 1. performance
2. quality
3. size
4. reliability
5. age
5. The relationship between promotion and sales budgets and sensor sales is generally… 1. an inverse one
2. a direct one
3. a bimodal relationship
4. a binomial relationship
5. nonexistent (there is essentially no significant relationship between promo budgets and sensor sales) 6. 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: 1. 10.7% (14% lower than the current debt rate)

2. 12.1% (the current debt rate)
3. 13.5% (14% higher than the current debt rate)
4. 6.05% (one-half the current debt rate)
5. 12.0% (one tenth percent less than the current debt rate) 7. At the beginning of the simulation, how many many assembly lines are there? 1. One, shared by all companies
2. Five line per company
3. As many as a company needs to produce its products, in an unlimited amount 4. None of the above
8. The Finance Department can use which of the following methods to acquire capital for company activities? 1. Current Debt, Stock Issues, Bond Issues and Profits
2. Profits, Current Debt, Withholding Pensions and Stock Issues 3. Liquidating Inventory, Stock Issues, Bond Issues and Profits 4. Credit Lines, Bond issues, Stock Issues and Profits
5. Current Debt, Stock Issues, Bond Issues and cooking the books 9. How can assembly lines double their capacity?
1. Speed up the production by automating
2. Add a second shift
3. Double the material available to the line
4. Build more assembly lines
5. Assembly line capacities can not be doubled
10. 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… 1. a $40 million company with 5 products

2. a $80 million company with 4 products
3. a $100 million company with 4 products
4. a $100 million company with 5 products
5. a $140 million company with 5 products
11. When a segment’s product supply exceeds demand, how much appeal, to the customer, will a product priced $1 above or below the segment price range lose? 1. 5%
2. 10%
3. 15%
4. 20%
5. 30%
12. The 5 market segments learned in the Capstone® book are the following: 1. High Beginning, Low Beginning, Performance, Size, and Medium Low 2. Performance, Size, Reliability, Price, Traditional, and Low End 3. High End, Low End, Traditional, Performance, and Size

4. End, High Low, Traditional, Reliability, and Size
5. none of the above
13. What is a market segment?
1. A group of customers with similar purchasing concerns
2. A geographic area where customers are located
3. A group of customers with differing purchasing concerns 4. An area of perceptual map where all points intersect
5. The common area of customer buying patterns
14. What’s the measure for product reliability?
1. Return rates of products sold
2. Customers’...
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