BS 2021 Final Exam PDF - Business and Society

# BS 2021 Final Exam ## EXAM Business and Society - Bearbeitungsdauer: 10:30:20-10:57:56 (27m 36s) - Erreichte Punkte: 56.50 von möglichen 64 Punkten, 88.28% (gerundet 88%), Note: 1 ### Frage 1: Q6- (4 Punkte) Which of the following statement/s is/are correct? - Red Bull is an example of a diff...

# BS 2021 Final Exam ## EXAM Business and Society - Bearbeitungsdauer: 10:30:20-10:57:56 (27m 36s) - Erreichte Punkte: 56.50 von möglichen 64 Punkten, 88.28% (gerundet 88%), Note: 1 ### Frage 1: Q6- (4 Punkte) Which of the following statement/s is/are correct? - Red Bull is an example of a differentiation strategy because the brand sets the product apart from the competition. - In the BCG portfolio a cash cow generates cash flow that can be used to finance question marks or growth of stars. - If cash flow generated by cash cows is used to finance a question mark then this is an example of using external sources of finance (external capital market). - A firm's top managers are likely to prefer internal sources of finance to raising new equity because internal sources of finance give them a high level of discretion while their investment decisions are tightly controlled by owners when raising new equity. ### Frage 2: Q7- (4 Punkte) Which of the following statement/s is/are correct? - Within the 4 P's framework, the choice of sales channels is a promotion decision. - From a financial perspective, a marketing campaign can be seen as an investment that aims at generating higher revenues in the future. - Decisions on the 4P's can be used to differentiate a given product from competitors' products. - The money spent for a marketing campaign is cash outflow but no expense. ### Frage 3: Q16-(4 Punkte) Which of the following statement/s is/are correct? - If a company's core competence is marketing then this indicates a cost leadership strategy. - High complexity of services by tailoring services to the variety of customer preferences, is a typical characteristic of cost leadership strategies. - The question of which processes a company should focus on and which processes should be outsourced is a typical question asked in "value chain analysis". - In a knowledge-based society, human resources tend to be easily replaced. ### Frage 4: Q15- (4 Punkte) Which of the following statement/s is/are correct? - With its Model T, the Ford Motor Company pursued a differentiation strategy, since the production process differed significantly from existing production processes for cars at that time. - Edith Penrose is one of the leading scientists when it comes to the Market-based view. - When companies propagate a purpose in their employer branding activities, then this addresses people's need for self-actualization in Maslow's hierarchy of needs. - When a company considers selling its products online, then this is a decision on "Place" in the "4Ps concept". ### Frage 5: Q8- (4 Punkte) Which of the following statement/s is/are correct? - The supply chain can be defined as the collection of production processes performed within a company. - When Red Bull decides on whether product distribution should be organized "in-house" or organized by collaboration with a partner firm, then this is a make-or-buy decision. - From a production perspective, efficiency means that no inputs are wasted. - Taylorism is a form of humanistic management. ### Frage 6: Q3- (4 Punkte) Which of the following statement/s is/are correct? - According to the cost-of-production method, profit equals the monetary value of the goods/services sold during a time period (revenues), minus the monetary value of resources consumed to produce these goods/services (expenses). - In the long run, investors' returns on a company's equity should be lower than their returns on bonds issued by the same company. - When a company distributes its profits of the year 2021 to its owners at the end of the year, then the company's net value (according to the balance sheet) at the end of 2021 equals its net value at the beginning of the year. - The fact that balance sheets do not contain most intangible assets is one main reason why the market capitalization of companies is very often higher than their net value (=equity) according to the balance sheet. ## Question 7 - When a company pays the interest for a bank loan, then this is no expense because there is no "resource consumption". - When a company buys machinery from its cash reserves then this does not change the overall monetary value of assets in the balance sheet. - When a company pays back a loan by using its cash reserves, then this is an expense because cash money is consumed. - Paying salary to employees is an expense. ### Frage 8: Q10- (4 Punkte) Which of the following statement/s is/are correct? - When a company invests money to build up a brand then such investment always decreases overall profit in the long run, since brand name capital is an intangible asset that cannot be listed in the balance sheet. - Taylorism emphasizes the role of intrinsic motivation. - Bureaucracy is characterized by centralized authority, rules and defined procedures. - From a P&L-perspective employees cause expenses (salary), but with their expertise and knowhow they help to generate revenues. ### Frage 9: Q4- (4 Punkte) Which of the following statement/s is/are correct? - When a taxi company buys a new car then this transaction leads to a lower ROI because capital increases while profits do not change (they only change once the taxi gets used). - When a taxi company buys a new taxi for 40,000 EUR then this transaction is a capital expenditure. - When a taxi company sells an unused car above its book value, then ROI increases. ### Frage 10: - When a car producing company sells cars in distribution centers owned by the company, then this is franchising. - The SWOT analysis combines the market-based view with the resource-based view. - From a strategic perspective, it is a common rule for make-or-buy decisions to outsource only activities that are not essential for establishing the company's USP. - Supply Chain Management includes make-or-buy decisions. ### Frage 11: Q1- (4 Punkte) Which of the following statement/s is/are correct? - A profit margin of 0.3 means that one Euro of revenue generates on average 3 cents of profit. - According to the balance sheet logic the (net) value of a company is determined by its equity. - Companies can raise equity by issuing bonds. - If it is possible for a company to invest cash money at 5% per year and to lend money at the same interest rate of 5%, then the value of a cash flow of 1,000 Euro one year in the future seen from the viewpoint of today is 1,000/1.05. ### Frage 12: Q5 - (4 Punkte) When a company pays back a loan, then ... - gearing goes down - Free Cash Flow increases - Cash Flow from financing decreases - EBIT increases ### Frage 13: Q9- (4 Punkte) Which of the following statement/s is/are correct? - Herzberg's theory explains the importance of extrinsic motivation. - The "Scientific Management" approach emphasizes the important role of leadership. - From a Taylorism perspective, management deals with the optimal division of the production process into individual tasks, in order to economize on the benefits of specialization. - The "Hawthorne effect" shows the importance of incentives in companies. ### Frage 14: Q2- (4 Punkte) Which of the following statement/s is/are correct? - The value of a company can be determined by calculating the present value of the future cash flows it generates for the owners. - An investment that involves lower risk should have a higher internal rate of return. - The value of a company can be determined from its market capitalization. - If an investment made today generates a positive NPV then this means that the value of the future cash flow stream generated by this investment is higher than the initial investment. ### Frage 15: Q11 - (4 Punkte) Which of the following statement/s is/are correct? - When the price of a product is increased then it can be expected that less units of the product will be sold but revenues may still increase. - Taylorism combined with assembly line production has been known as Fordism. - When a company invests money to build up a brand then such investment only makes economic sense if the company is able to get the invested money back through higher revenues. - In Herzberg's theory, recognition, responsibility, autonomy, and challenging work are main motivators. ### Frage 16: Q12 - (4 Punkte) Which of the following statement/s is/are correct? - According to Michael Porter's value chain, a process is a bundle of interrelated activities that create value for the customer. - Corporate Governance refers to the rules and mechanisms of the generation and appropriation of value created by companies. - A production function associates produced output with the cost necessary to produce this output. - Piece rate pay is an example for extrinsic motivation.