Question 1

Which TWO of the following are the main questions normally addressed by a mission statement?

Options :

A : How will we compete?

B : What are we providing?

C : How will we increase our market share?

D : What is our preferred future?

E : Why do we exist?

Answer: B,E

Question 2

Which one of the following is the best description of the product life cycle?

Options :

A : The sequence of activities associated with the creation of a product, beginning with research and development, then followed by design, and ending with manufacturing.

B : The sequence of phases associated with the product’s life in the market, beginning with introduction, followed by growth, maturity, and ending with decline.

C : The sequence of phases associated with the product’s life in the market, beginning with development, then followed by introduction, growth, maturity, and ending with decline.

D : The sequence of activities associated with the creation of a product, beginning with research and development, then followed by design, manufacturing, marketing and distribution, and ending with customer service.

Answer: B

Question 3

Company C operates a fleet of plant and machinery that is leased to contractors working in the construction industry. The company keeps a risk register which contains the following information:Risks by vehicle category

An indication of the likelihood and impact of each risk

Staff responsible for managing specific risks

Quantifications of the costs associated with each risk

Which ONE of the following items would you be most likely to see alongside this information in Company C's risk register?

Options :

A : Responses to address each risk

B : Insurance arrangements for each risk

C : A board sponsor for each risk

D : Timescales associated with each risk

Answer: A

Question 4

A detergent company sells large containers of industrial cleaner at a selling price of $12 per container. Each container of cleaner requires $4.50 of direct materials, $2.50 direct labor, and $1.00 of variable overhead. The company has total fixed costs of $2,000,000 and an income tax rate of 40%. Management has set a goal to achieve a targeted after-tax net income of $2,400,000. What amount of dollar sales must the company achieve in order to meet its goal?

Options :

A : $18,000,000.

B : $14,400,000.

C : $22,000,000.

D : $24,000,000.

Answer: A

Question 5

A company produces a variety of food products including hot dogs and hot dog buns. Which one of the following best describes these products?

Options :

A : Substitute.

B : Complementary.

C : Value.

D : Standardized.

Answer: B

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