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Special Topics in Financial Management

Offers in-depth exploration of specific areas within financial management, providing advanced knowledge and strategies for effective decision-making in finance.

mergers

acquisitions

risk management

derivatives

hedge funds

private equity

venture capital

initial public offerings (ipos)

corporate governance

international finance

financial regulations

financial fraud

capital budgeting

financial modeling

treasury management

It is the amount that a firm is willing to pay in exchange for the errorless advice from a market analyst.

  • Selling Price
  • Expected Value of perfect information
  • Expected value of the best choice
  • Total Cost

It is the price of a nation's currency in terms of another currency.

  • Exchange rate
  • Cross rate
  • Spot rate
  • Interest rate

The dividends of ordinary shares of LMN Corporation have been experiencing an annual growth rate of 10%. The present dividend per share is P 1.20. The investor is requiring a 15% rate of return. Required: Calculate the current value of LMN’s 200 ordinary shares under each of the following independent conditions.

  • 5,280
  • b) Dividend growth rate is anticipated to decrease by 1.5% and to remain constant at that level.
  • Answer:
  • 4,006
  • c) Dividend growth rate is expected to increase to 12.5% and to remain constant at that level.
  • 10,800

Capital asset pricing model calculates the expected return on asset based on its beta and the expected market return.

  • True
  • False

Employee-to-employee training is when you need to allow employees to physically observe an activity and get hands-on training so that they can perform the task themselves, you might consider having experienced employees lead the training.

  • True
  • False

Is there such thing as a difficult person?

  • a. No, there are difficult situations and interactions
  • b. No, all people are easy to work with
  • c. Yes, customers are inherently difficult
  • d. None of the answers are correct.

HR is bigger than just hiring and payroll – the main responsibilities of HR include protecting the employees and the employer. Protection occurs in a number of ways, including those that intersect with traditional HR responsibilities like managing benefits and practicing ethical and legal hiring and management practices.

  • True
  • False

Any item or element of inventory which has been used or sold within a given period.

  • Active Inventory

Book III – Conditions of Employment discusses the provisions about wages including prohibitions regarding wages and working conditions for special groups of employees such as employment of women, minors, house helpers, and home workers are also included.

  • True
  • False

The cost of capital includes interests on bonds and dividends on shares.

  • True
  • False

Multi-market competition occurs when firms compete against each other in several products or geographic markets.

  • True
  • False

Recruitment, placement and retirement, employee-employer relationship/labor relations, working environment, compensation, and health and safety imposed legal implication to the organization. Hence, organizations need not to be compliant with all the labor law provisions enacted and made by the government.

  • True
  • False

In which force is there economies of scale, capital requirements, switching cost, access of distribution channels, coast advantages and government policy?

  • bargaining power of buyers
  • threat of substitutions
  • rivalry among existing firms
  • threat of entry

In graphing the security market line, the risk is plotted on the x-axis and the expected return on the y-axis and from the SML slope, the market risk premium is defined.

  • True
  • False

In general, if the level of investment risk increases the possible returns on investment also goes up.

  • True
  • False

When dealing with customers, you should not:

  • a. use the word, "no".
  • b. give out orders or place blame on the customers.
  • c. All the answers are inappropriate ways to treat the customers.
  • d. get caught up in an argument.

A way to execute transactions and share information with other businesses, consumers or with government by using computer and telecommunication networks, including the Internet.

  • Electric Commerce

One variable change on many values is allowed in simulation analysis.

  • True
  • False

Considering the balanced scorecard, the perspective in which performance of organization includes

  • all of these
  • financial perspective
  • learning and growth perspective
  • customer perspective

The strategic management process is static.

  • True
  • False

Sustained increase in the price level of nearly all commodities

  • Inflation

Debenture bonds are bonds backed up by ____-of the bond issuer.

  • Debenture bonds are bonds backed up by ____-of the bond issuer.
  • Answer:
  • Good Faith

The contemporary approach to capital structure management recognizes tax effects, bankruptcy costs and agency cost.

  • False
  • True

A market-based move that is taken to fine-tune a strategy, usually involves fewer resource and is relatively easy to implement and reverse.

  • True
  • False

Philippine jurisprudence has long applied a rule that any doubts in the interpretation of law, especially the Labor Code, will be resolved in favor of labor and against management.

  • True
  • False

A product which according to an ABC classification belongs to the 60-65% of inventory that represents only around 10-15% the annual demand, usage or production value.

  • C Items

In fixed order interval systems, the interval between orders that will minimize the total inventory cost, under a given set of circumstances, obtained by trade off analysis between the cost of placing an order and the cost of holding stock

  • Economic Order Interval

What types of changes face organizations?

  • stable
  • continuous
  • All are types of changes
  • predictable

The management of groups of products that are interchangeable, or substitute, in meeting consumer needs as opposed to the traditional concentration on individual products and brands.

  • Category Management

An international bond guaranteed by an international consortium of banks.

  • Eurobond
  • Foreign bond
  • Eurocredit
  • Dollar bond

The attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be future labor shortage s or surpluses

  • Forecasting
  • Strategic Planning
  • Goal setting

Under the pessimistic scenario, the minimum set present value of a project is shown and the least favorable value is assigned to each variable.

  • True
  • False

Stock split resulted to the following except

  • Reduced par value per share
  • Increase in number of outstanding shares
  • Increase the total market value of the equity
  • Decrease in market price of shares

A complaining customer is?

  • a. often lying
  • b. always right
  • c. almost right
  • d. always the customer

The rate of demand for items, and the associated inventory costs, are assumed to be known with assurance and the replenishment lead time is assumed to be constant and independent of demand.

  • Deterministic Inventory Control Models

A company is planning to invest in new machinery with a purchase price of P1, 300,000. Installation cost is P200, 000. The new machine will contribute to the cash inflow of P500, 000 annually. The machine has an estimated useful life of 10 years, no salvage value. The company is expecting a 22% return on all of its investment. The present value rate is 4.49409.

  • P461,590
  • P898,818
  • P700,000
  • P500,000

A code used to identify the specific production point, for a product or an assembly, in a manufacturing or assembly process.

  • Batch Number

This refers to the sense of regret after having made a purchase.

  • a. post-purchasing behavior
  • b. buyer post purchasing behavior
  • c. buyers regret
  • d. buyers remorse

It requires an integrated approach that addresses multidimensional aspects of employees, ranging from enhancing technical and interpersonal skills to creative thinking and leadership

  • HR planning
  • None of the above
  • Manpower development
  • Management prerogatives

The optimal capital structure is the combination of debt and equity that maximizes the firm's market value and minimizes its weighted average cost of capital at the same time.

  • True
  • False

Which shoes are for runners who generally have a low or flat arch and are moderate to severe over-pronators. These shoes employ extra support devices on the medial side to slow excessive pronation.

  • neutral cushioning shoes
  • trail shoes
  • motion control shoes
  • stability shoes

Sovereign Risks include

  • Price risk
  • Liquidity risk
  • Interest rate risk
  • All of the above

Business Risk is the possibility that shareholders will lose their investment in a company with debt, if the cash flows will not be sufficient to meet its financial obligations.

  • False
  • True

It is a process that seeks to optimize an organization's usage of its human resources.

  • Manpower development
  • Labor downsize
  • All of the above
  • Human Resource optimazation

_______________ is a condition or pressure that if it continues will have significant effect on the firms.

  • global issue
  • strategic issue
  • cultural issue
  • issue

One of the basic principles of risk management identified by ISO is that it should be used to handle certainty.

  • True
  • False

A form of Pareto analysis applied to a group of products in order to apply selective inventory management controls.

  • ABC Analysis

Which step in the process model, is about structures, technology, power, politics and cultures?

  • strategy implementation
  • strategy level
  • goals and objectives
  • situation analysis

Most upset customers will calm down if you offer a sincere apology.

  • True
  • False

Which step of the process model is about consumers?

  • mission and purpose
  • goals and objectives
  • strategy
  • vision statement

Disposable income, taxes, imports, stock market, government policies, and cost of living are all - ____________ issues.

  • macro
  • legal
  • social
  • political

Financial break-even point is the earnings before interest and taxes level at which after paying interest on bonds, dividends on preferred shares, and income taxes, nothing is left for ordinary equity shareholders.

  • True
  • False

XYZ Corporation plans to produce and sell Products A and B. Both products will be manufactured using the same plant. The total Fixed costs per year will remain the same at P380,000. Each product will be sold at P120 each. Variable cost is 60%. The demand for Product A is 10,000and Product B is 15,000 with a probability of 80% and 60%, respectively.

  • Product B
  • Product A

It means apportioning with a third party the burden of loss or benefits from risk.

  • Sharing the risk
  • Retaining the risk
  • Reducing the risk
  • Avoiding the risk

In the process model, the goals and objectives are about statements.

  • True
  • False

The Labor Code of the Philippines stands as the law governing employment practices and labor relations in the Philippines. It was enacted on Independence day of 1974 by President Ferdinand Marcos, in the exercise of his then extant legislative powers.

  • True
  • False

An increase in which of the following is likely to increase a firm's ability to pay dividends?

  • Liquidity
  • Access to capital markets
  • Both a and b.
  • New capital requirements for expansion

This refers to the decision processes and acts of people involved in buying and using products.

  • a. buying characteristics
  • b. customer decision process
  • c. buying behavior
  • d. customer profile

There is no direct cost associated with retained earnings.

  • True
  • False
  • Correct
  • Mark 1.00 out of 1.00
  • Not flaggedNot flaggedFlag question

A new process will be applied by ABC Corporation in manufacturing their products. Based on their study, the new process will yield savings on raw materials of P 150,000 per year; in labor by P 40,000, and in factory overhead by P25,000. The company’s depreciation will increase by P20,000. Corporate tax rate is 32%.

  • 152,600

In what level of strategy of marketing, accounting, hr, and finance in?

  • business
  • operations
  • functional
  • CEO enterprise

Sources of Applicants:

  • True
  • False

Raw material, ingredient, part, or sub-assembly that goes into a higher level assembly, compound, or other part.

  • Component Part

In terms of the product life cycle, the correct layout is introduction, growth, stake-out, maturity, and decline.

  • True
  • False

An issue that is about trends, culture, and values.

  • macro
  • social
  • legal
  • political

Which step is why company or organization exist?

  • strategy implementation
  • situation analysis
  • mission and purpose
  • vision statement

A kind of divestiture which involves the separation of a subsidiary from its parent company without changing its equity ownership

  • Spin-off

It is also called the Bird-in-the hand theory.

  • Walter model
  • None of the above choices.
  • Gordon/Lintner model
  • M&M theory

_______________ is based on product or service differentiation.

  • oligopoly
  • monopolistic
  • perfect competition
  • monopoly

The Labor Code contains several provisions which are beneficial to labor, except one

  • authorized strikes for as long as they comply with the strict requirements under the Code
  • The right to trade union is expressly recognized, as is the right of a union to insist on a closed shop
  • authorized wage hike that comes from the representative of union even without firms consent
  • prohibits termination from employment of Private employees except for just or authorized causes as prescribed in Article 282 to 284 of the Code
  • All of the above

The quantity of output produced is divided by quantity of used input to calculate

  • target productivity
  • unused productivity
  • total factory productivity
  • partial productivity

______________ is the process of seeking information about relationships and events in the external environment.

  • environment analysis
  • strategic issue
  • environment issue
  • strategic management

Payment of cash dividend will reduce the retained earnings at the same time will lower the company's most liquid asset.

  • True
  • False

An approach in purchasing another firm where the acquiring firm can have a surprise takeover of the target firm without communication the latter’s management

  • Tender Offer

Which environment is competitors, suppliers, customers, stockholders, micro, porters model, unions, local community, and general public?

  • industry
  • general external
  • global
  • internal

It stands as the law governing employment practices and labor relations in the Philippines.

  • Labor Code of the Philippines
  • Civil Law
  • Penal Code of the Philippines

Beta coefficient is a measure of volatility.

  • True
  • False

Mutually exclusive project decision are contending proposals that will give the firm positive benefits and accepting one or a combination of such projects might disregard others for consideration.

  • True
  • False

Customers are easily satisfied if their expectations are effectively managed.

  • a. No
  • b. Yes
  • c. Maybe.

The exchange rate in the spot exchange market that is also called quantity quotation.

  • Direct Quote
  • Cross Quote
  • None of the above choices
  • Indirect Quote

Asset liquidity pertains to an easy conversion of company’s assets into cash in the event of unexpected substantial need for additional cash flow.

  • False
  • True

Which basic component of the running shoe is usually very firm so that it can control motion of the rear foot?

  • heel counter
  • midsole
  • post or footbridge
  • outsole

The planned elimination of large numbers of personnel designed to enhance organizational effectiveness.

  • Downsizing
  • Upbringing
  • Recruiting
  • Force Entry

The Security Market Line (SML) is

  • Also called the Capital Allocation Line.
  • The line that is tangent to the efficient frontier of all risky assets.
  • The line that describes the expected return-beta relationship for well-diversified portfolios only.
  • The line that represents the expected return-beta relationship

What is the purpose of your warm clothes?

  • to maintain a thermal equilibrium
  • to increase your body temperature
  • to make you a better skier
  • to look fashionable

The expected return-beta relationship of the CAPM is represented by a Capital market line.

  • True
  • False

Human Resource acquisition is synonymous to __________________________

  • Performance Management
  • Recruitment and Selection
  • Talent Management
  • Compensation

Which force is about buying in large volumes at one time, product/service buy with low/no differentiation, buyers face low/no switching cost, earn low profits, and credible threat of backward vertical integration?

  • threat of entry
  • bargaining power of buyers
  • rivalry of existing firms
  • bargaining power of suppliers

The process of comparing performance against the practices of other leading companies for the purpose of improving performance.

  • Benchmarking

The primary measure of system performance relating to the expected percentage of the supported system that will be available at a random point in time and not out of service for lack of spares.

  • Availability

Little things such as taking pride in your work, smiling, being alert and aware, and not being afraid to ask can all influence the service you give to the customers.

  • True
  • False

_____refers to the internal rate of return of bonds.

  • Yield to Maturity

The deduction from inventory, after manufacture, of the component parts used in a parent by exploding the bill of materials by the production total of parents produced.

  • Backflushing

What can affect how a rider rides and how much power can be delivered to the pedals?

  • their seats
  • their position
  • their feet
  • their weight

Labor Code was enacted on Labor day of 1974 by ______________________________

  • Imelda R. Marcos
  • Fidel V. Ramos
  • All of the Above
  • Bong Bong Marcos
  • Ferdinand E. Marcos

The exchange rate at which a party to a contract agrees to receive or deliver a currency at some future date is

  • Cross rate
  • Parity rate
  • Forward exchange rate
  • Interest rate

_____________ are the most recent statistical characteristics of a population; it includes: age, gender, income, education, e.g.

  • a. age
  • b. demographic
  • c. segmentation
  • d. customer profile

ABC Corporation is considering buying a new plant for its expansion program. The plant costs P 10,000,000 and would require additional P 3,500,000 investment in operating working capital.

  • 13,500,000
  • How much is the depreciable value of the plant?
  • Answer:
  • 10,000,000

The main goal of employee training is to increase competence in each employee's role, it also serves as a way to develop your organization as a whole in terms of making employees more engaged, productive and motivated.

  • True
  • False

The key driver of a political climate includes and limited ONLY to internal factors.

  • True
  • False

If the conditional probability of each event equals its unconditional probability, the two events are __.

  • INDEPENDENT

It is the practice or activity carried on by the organization with the primary purpose of identifying and attracting potential employees. It thus creates a buffer between planning and actual selection of new employees.

  • Human Resource training
  • All of the above
  • Human Resource Planning
  • Human Resource Recruitment

A system where products for store orders are not put away into the warehouse racking for later picking but are processed into store orders on arrival at the RDC.

  • Cross Docking

A BC Corp.‘s proposed project with an estimated life of 20 years and salvage value of P100,000 requires an initial investment of P 1,000,000. It will yield yearly cash inflow of P100, 000. Straight line method will be used.

  • 5%
  • 10%
  • 5.5%

It deals with the recruitment and placement of workers to promote and maintain a state full of employment through improved man power training, allocation, and utilization including regulating the employment of aliens, and the establishment of registration and/or work permit systems, and to ensure careful selection of Filipino workers for overseas employment in order to protect the good name of the Philippine abroad

  • Book I of The Philippine Labor Code - Pre-Employment
  • All of the above
  • Book III – Conditions of Employment
  • Book II Labor Relations

Currency fluctuations, political risk, trade risk, global issues, culture issues, terrorism, and climate/weather are _____________.

  • global trends and issues
  • strategic issues
  • issues
  • situational analysis

Dividends should not be made out of the capital of the firm is what legal requirements rule?

  • Capital impairment rule
  • Insolvency rule
  • Solvency rule
  • Net income rule

The most credible advertising is a satisfied customer.

  • True
  • False

balanced Scorecard measures with benchmark for performance in

  • Development Areas
  • Non-Financial Areas
  • Structural Areas
  • Financial Areas

Firms with few competitive resources are less likely to delay responding to competitive actions.

  • True
  • False

The net present value method is one popular capital budgeting models wherein the cash flows are discounted at the company's cost of capital.

  • True
  • False

Capital budgeting refers to a budgeting for the acquisition of assets that will be used for a long period of time and are considered as investments.

  • True
  • False

Which level is the lowest level of strategy?

  • functional
  • CEO
  • operations
  • business

Capital components include bonds, preferred shares, ordinary shares, and retained earnings.

  • True
  • False

It is the arrangement of probabilities related with the values of a variable that can assume a limited or determinate number of outcomes.

  • DISCRETE PROBABILITY DISTRIBUTION

A part or product that has been reserved, but not yet withdrawn or issued from stock, and is thus not available for other purposes.

  • Allocated Stock

A portfolio beta of greater than 1 indicates greater instability and less than 1 beta means less volatility.

  • True
  • False

Stock split will lower the par value of outstanding equity shares.

  • True
  • False

The fixed exchange rate system requires all countries to set an exact parity system vis-a-vis the

  • Canadian Dollar
  • United States Dollar
  • Hong Kong Dollar
  • Singapore Dollar

It is an investment with a return that is not warranted.

  • RISKY FINANCIAL ASSET

Which force is about few suppliers can exert power over price, no substitutes, sell to a number of diverse industries, crucial element, and credible threat of forward integration?

  • threat of entry
  • bargaining power of buyers
  • bargaining power of suppliers
  • rivalry of existing firms

The Philippine Trade union prescribes the rules for hiring and termination of private employees; the conditions of work including maximum work hours and overtime; employee benefits such as holiday pay, thirteenth month pay and retirement pay; and the guidelines in the organization and membership in labor unions as well as in collective bargaining.

  • True
  • False

_____is the interest rate that determines the amount of interest to be paid by the issuer and to be received by the bondholder each year.

  • Stated Interest Rate or Contract Interest Rate

Import/export quotes, tariffs, and special tax - would be what kind of global trends or issue?

  • trade risk
  • currency fluctuations
  • global issues
  • cultural issues

Customers who complain:

  • a. have trouble in their primary relationships.
  • b. are genetically predisposed to be sourpusses.
  • c. had unhappy childhoods.
  • d. are doing you a service in identifying what isn't working in your business or organization.

These covers the impact of political institutions on human resource department. All actions and activities of HR are affected by these factors.

  • Legal and political environment
  • Political environment
  • Legal environment
  • All of the above
  • Technological environment

Both ________________ and ________________ affect the awareness and motivation of a firm to undertake actions and responses.

  • a. market commonality, resource similarity
  • b. diversity, customer segmentation
  • c. market analysis, customer profile
  • d. market segmentation, affordability

The risk that securities cannot be converted quickly to cash is called

  • Liquidity risk
  • Default risk
  • Interest rate risk
  • Purchasing power risk

An objective statement is ______________.

  • specific, written, measurable, realistic
  • broad
  • specific
  • broad, written, realistic

Accounts Payables and Accruals are provided by suppliers and workers as part of the normal operations and are not included in the category of capital.

  • True
  • False

The changes brought about by the shift in political climate includes..

  • All of the above
  • Greater human resource mobility among firms, relative to the context of organizational commitment, and enhancing the role of HR functions such as recruitment as core strategic functions
  • Shift from performance related-pay to result-oriented pay as a reaction to both the changed economic circumstances and new work methods such as telecommuting and outsourcing.
  • Importance of individualism over collectivism resulting in individual contracts and negotiations opposed to collective bargaining and roles for trade unions
  • Shift from performance management to talent management to tap the employee’s core skills for the betterment of the organization

Another name for general external environment is?

  • broad environment
  • task environment
  • narrow environment
  • operating environment

The example of learning and growth perspective in balanced scorecard is

  • operating income and revenue growth
  • operating capabilities and number of patents
  • employee turnover rates
  • customer satisfaction and market share

An item that, according to an ABC classification, belongs to a small group of products that represents around 75-80% of the annual demand, usage or production volume, in monetary terms, but only some 15-20% of the inventory items.

  • A Items

___________________________ is a complex process of choosing the best among the best interested individuals to the job, therefore it requires thorough assessment and wise decision coming from the recruiter to choose who among the applicants are best qualified.

  • Planning
  • None of the above
  • Forecasting
  • Training and development
  • Recruitment and selection

It is described as using combined inputs from two firms to produce multiple products.

  • Economies of Scope

Calculating the weighted average cost of capital is the most widely used method of approximating the cost of ordinary shares.

  • True
  • False

Following are the proponents of the Dividend Relevance theories except

  • Lintner
  • Walter
  • Gordon
  • Miller

A company issued a 15-year bonds with par value of P1,000 each bond. The coupon rate is 14%. The investors’ required rate of return is 10%. Required: Compute for the interest that the company pays annually on each bond.

  • 140

It is the occurrence of a condition when the whole is greater than the sum of the parts as a resulting of eliminating overlapping functions or resources in the event of mergers or acquisitions.

  • Synergy

Intensified rivalry within an industry results in increased average profitability across the industry.

  • True
  • False

Which one of the following is a “lag” performance indicator?

  • number of complaints received from customers
  • return on capital employed
  • output per employee
  • number of training hours per employee

This involves evaluating the situation and trends in a particular company's market by looking at the following 3 C's: customers, company, and competitors.

  • a. Situational Analysis
  • b. Market Research
  • c. SWOT Analysis
  • d. Cost Benefit Analysis

A distinct, separate and manageable group of products that are perceived by consumers to be interrelated.

  • Category

Investments in security A with a beta of 1.6 and in security B with a beta of 0.7 was made on a 50:50 basis. The portfolio beta is

  • 1.15
  • 0.36
  • 1.40
  • 1.08

If threat of entry is low, rivalry of competitors is low, bargaining power of buyers is low and bargaining power of suppliers is low, the market attractiveness is?

  • med
  • high
  • none of the answers are correct
  • low

Historical costs have no effect on the future capital investment options.

  • True
  • False

Initial cash outflow

  • Installation costs

Preference capital investment decision

  • Renting or owning a facility

The stock available to service immediate demand.

  • Available Stock

______________ is a group or a person who has stake or claim in how the company operates and can be affected by the company.

  • stakeholders
  • strategic management
  • environmental analysis
  • strategic issues

The difference between the selling price and the variable cost is called

  • Fixed cost
  • Break-even
  • Total Revenue
  • Contribution Margin

Inventory held in order to be able to satisfy a demand with seasonal fluctuations with a production level that does not fluctuate at all or that varies to a lesser extent than the demand.

  • Anticipation Stock

Profitability index is used in ranking investment projects is an ascending order of desirability.

  • True
  • False

“Company A + Company B = Company A” is an example of what type of business combination?

  • Merger

Independent capital investment decision

  • Developing a new product

Which one of the following statements is true?

  • Balanced Scorecards can only be updated on an annual basis
  • Balanced Scorecards always have four perspectives Balanced Score
  • Balanced Scorecards can be used in Not-for-Profit organizations
  • Balanced Scorecards are a feedback mechanism

What process is about checking if the strategy is working?

  • goals and objectives
  • strategy control
  • strategy implementation
  • _feedback

Who is the ultimate boss at retail concepts?

  • the employees
  • your customer
  • your supervisor
  • a product expert

If an organization is changing in small increments, the rate/speed is slow.

  • True
  • False

The size of many inventories requires that they be broken down into groupings for the purpose of control.

  • Aggregate Inventory Management

The stock of goods held by an external customer which is still the property of the supplier but for which payment is only made when stock is sold or used by the customer.

  • Consignment Stock

A positive net present value would mean that the investment proposal should be accepted.

  • True
  • False

Stock repurchase pertains to treasury shares.

  • True
  • False

This is an organized effort to gather information about markets or customers.

  • a. customer profile
  • b. market research
  • c. target market
  • d. consumer market analysis

External driver such as government regulations, nature of work contracts, and labor legislations greatly affects the management of workforce because the organization’s primary concerns are to become compliant to these provisions for employees welfare.

  • True
  • False

Vertical merger is a case of combining two companies who are competitors in the same industry.

  • True
  • False

Market value weights are historical weights used in computing the weighted average cost of capital that determined the actual proportion of each kind of permanent capital in the structure based on the values given in the Balance Sheet.

  • True
  • False

_______________ is where there is only one player.

  • oligopoly
  • perfect competition
  • monopoly
  • monopolistic

RST Corporation ‘s EBIT for 2016 amounted to P200,000. The company’scapital structure consists of 100, 15%, P5,000par value bonds; 1,00012% preferred shares, P100 par value; and 2,000 P50 ordinary shares, P50 par value. Retained Earnings account has a balance of P 125,000 as of December 31, 2016. Forty percent of earnings after interest and taxes (corporate tax rate - 32%) will be retained in the business.

  • 85000
  • c) Dividends on preferred shares -
  • Answer:
  • 12000
  • d) Dividends on ordinary shares -
  • 51000
  • e) Balance of Retained Earnings Account as of December 31, 2016 -
  • 125000

1. Probability distribution based on past results of similar events.

  • Objective probability distribution

Which is an example of stakeholders?

  • All the given answers are possible.
  • suppliers
  • customers
  • employees

It is the standard measure of the risk per unit of return.

  • COEFFICIENT OF VARIATION

Book I of The Philippine Labor Code - Pre-Employment give comprehensive discussion on labor organization, collective bargaining, agreements, grievance machinery and voluntary arbitration.

  • True
  • False

Traditional and MM approaches or theories have several common assumptions including no taxes, all earnings are paid as dividends, earnings before interest and taxes is constant so with business risks.

  • True
  • False

A support arrangement similar to Vendor Managed Inventory but where replacement orders for the vendor-owned stock are agreed by the user prior to delivery.

  • Co-Managed Inventory

Simpliest frm of ‘what if” analysis

  • Scenario analysis

Inventory accumulated between dependent activities in the goods flow to reduce the need for completely synchronized operations.

  • De-Coupling Stock

It is the kind of merger that combines two companies producing non-related products and has no common market.

  • Conglomerate merger

According to the Capital Asset Pricing Model, a well-diversified portfolio's rate of return is a function of

  • Market risk
  • Reinvestment risk.
  • Unsystematic risk
  • Unique risk.

The expected return - beta relationship of the CAPM is graphically represented by the

  • Capital market line.
  • Capital allocation line.
  • Security market line.
  • Efficient frontier with a risk-free asset.

In the strategic management process, how many steps are there?

  • 2
  • 8
  • 5
  • 10

Another term for deferred payment plan.

  • Earn-out

Decision-making under __ means that for each decision action there is only one event and only a single outcome for each action.

  • CERTAINTY

The following statements regarding beta coefficient are true except

  • It is the weighted sum of all individual asset betas.
  • It is a measure of volatility.
  • It is used in CAPM in calculating the expected return of an asset based on its beta and the expected market returns.
  • In beta computation, regression analysis is applied.

Self-guided training is a type of training can range from having your employees attend a college class with in-person lectures to bringing in an outside trainer to your office for a short seminar.

  • True
  • False

Labor code prescribe the following rules, except one:

  • registration of organizations to government agencies to conduct business and hire workforce
  • the guidelines in the organization and membership in labor unions as well as in collective bargaining
  • hiring and termination of private employees
  • employee benefits such as holiday pay, thirteenth month pay and retirement pay
  • the conditions of work including maximum work hours and overtime

The most logical and reliable tool in valuing a merger.

  • Net present value or discounted cash flow

The following is very important in how running shoes should fit except which one?

  • a. wiggle room
  • b. foot bed insert
  • c. heel
  • d. fit

. Type the answer in the space provided

  • Answer:
  • 20
  • per share

During order picking, the percentage of orders or lines for which 100% completion was achieved from the primary location or picking face.

  • First Pick Ratio

_________________ is a group of firms within the industry following a same or similar strategy.

  • strategic group
  • strategic issue
  • stakeholders
  • strategic management

An initiative driven by retailers to drive out transportation costs and to improve the efficiency within the primary segment of the supply chain.

  • Factory Gate Pricing

Customers who complain want----

  • a. to be heard and have their experience validated.
  • b. something for nothing.
  • c. to vent for the sport of it.
  • d. to be made majority stakeholders in the company.

________________ is a major trend, developing progression events that will affect strategy.

  • issue
  • strategic issue
  • global issue
  • cultural issue

The employer and the workforce are responsible for devising programs geared toward an employee's career development and job skills acquisition after employment through training, performance management and organization development.

  • True
  • False

You invest P6, 000 in security X with a beta of 1.2 and P4, 000 in security Y with a beta of 0.90. The beta of the resulting portfolio is

  • 1.00
  • 0.36
  • 1.08
  • 1.40

_______________ is a supply equals demand as a equilibrium.

  • perfect competition
  • monopolistic
  • oligopoly
  • monopoly

It is also called the law of one price.

  • Upvaluation
  • Purchasing Power Parity
  • Inflation
  • Interest Rate Parity

________________ relates to the gains or losses a firm will experience if it attacks a rival or responds to an attack by a rival.

  • a. Association
  • b. Motivation
  • c. Innovation
  • d. Development

On June 30, 2016, ABC Company entered into a lease agreement for an office building for 30 years with an annual lease payment of P200,000. On July 1, 2016, the present value of the lease payments at 12% interest is P1,611,000. How much is the lease liability as of June 30,2017?

  • 1,604,320

Which of the following does not contribute to the image you project?

  • a. choice of words
  • b. tone of voice
  • c. body language
  • d. your specific job title

The sum of the physical stock of a particular product and the quantity of that product ordered for a particular period, but not yet received.

  • Effective Stock

The CAPM describes the relationship between the unsystematic risk and the expected return for assets.

  • True
  • False

Where the projected cost of repair, normally for a repairable or rotable item, exceeds a management set percentage of the replacement value of the item concerned.

  • Beyond Economic Repair

3. Difference between the highest and the lowest possible outcome.

  • Range of a probability distribution

The classification of inventory, after ABC analysis, into three basic groups for the purpose of stock control and planning.

  • ABC Classification

If the optimistic scenario has a high positive net present value and it seems to be difficult to assume that it can certainly happen, it is safer to choose the most likely scenario that has a lesser positive net present value.

  • True
  • False

The stock resulting from the assessment of an all-time requirement and delivery of an all-time order.

  • All-Time Stock

It is a graphical representation of possible solutions to a decision based on certain conditions.

  • Simulation
  • Sensitivity Analysis
  • Decision Tree
  • Probability

Balanced Scorecard can act as powerful

  • Development framework
  • Operations framework
  • Service framework
  • Organizing framework

Which of the following statements is false

  • a. can be cascaded to different levels/parts of organizations
  • b. cannot be used in conjunction with budgetary control systems
  • c. are one type performance dashboard
  • d. can be used to produce strategy maps

It is the variability of returns of the portfolio as a whole.

  • PORTFOLIO RISK

The last order for a particular product in the last phase of its life cycle.

  • All-Time Order

Which method of attaching skate boots securely to the foot which is not as quick and easy to use and may not provide adequate support for a beginner?

  • buckle closure
  • lace-buckle combination
  • laces
  • zipper system

Training as a method in manpower development is one of the HRD techniques that works hand-in-hand with performance appraisals and makes the development process more like a cycle.

  • True
  • False

A listing of components, parts, and other items needed to manufacture a product, showing the quantity of each required to produce each end item.

  • Bill of Material

A company has a net investment of P500, 000 for one of its project and an annual cash flow of P80, 000, estimated life of the project is 5 years.

  • 6.25 years
  • 5 years
  • 1.25 years
  • answer not given
  • Question text

When you answer a call, and the customer really needs to resolve the issue with another department, it's your responsibility to make sure the customer reaches someone who can help.

  • True
  • False

Preferred shares are also rated like bonds that is why, some investors consider them to be more like debt than equity.

  • True
  • False

Most important human resource management laws and regulations, except one

  • Harassment
  • Discrimination and favoritism
  • Background checks
  • None of the above
  • Confidentiality

The example of direct engineered cost is

  • direct material cost
  • direct labor cost
  • indirect labor cost
  • indirect material cost

A sub-set of a market made up of people or organization with one or more characteristics that cause them to demand similar product/and or services.

  • a. market segmentation
  • b. service
  • c. market share
  • d. demand

Recruitment Process: 1. Formulating recruitment strategy 2. Searching for job applicants 3. Screening applicants 4. Maintaining pool of applicants

  • True
  • False

It is the possibility that an event will happen.

  • PROBABILITY

_____________ is the process organization use to get knowledge and information so they can analyze the information and make decisions to match or fit the organization with external environment the best way possible.

  • strategic management
  • environmental analysis
  • stakeholders
  • strategic issues

The total requirement for a particular product to be expected in the future.

  • All-Time Requirement

Among manpower development's functions is to oversee the development of human expertise in the organization to improve productivity and efficiency.

  • Recruitment and Selection
  • Training and Development of Manpower
  • Performance and Evaluation
  • None of the above

What kind of fabric absorbs very little water and can melt easily?

  • lycra
  • wool
  • cotton
  • fleece

Through planning and monitoring of employee work results, __________________________ are designed to ensure employees acquire pertinent skills and qualities required for working at higher levels.

  • None of the above
  • reward programs
  • Decision programs
  • application programs
  • development programs

Which step is about defining the environments?

  • strategy
  • goals and objectives
  • situation analysis

Why is great customer service important?

  • a. All the answers are correct.
  • b. Stress levels are down.
  • c. You experience less grief from the customer.
  • d. The customer is happy.

Which level is about business units?

  • operations
  • corporate
  • functional
  • business

When dealing with a customer who is vague, is it better to be patient with them while trying to bring them back to the issue?

  • True
  • False

When dealing with aggressive customer, which of the following will help?

  • a. not responding with aggression
  • b. taking a deep breath
  • c. ask, and keep asking for facts
  • d. All the answers are possible.

ABC Corporation has an outstanding preferred share in which it pays an annual cash dividend of P14.30. The shareholders’ required rate of return on preferred shares is 13%. How much is the intrinsic value of the preferred share?

  • 110

Dividend policy are finally approved by the

  • The Treasurer
  • Board of Directors
  • Chief Financial Officer
  • President of the company

A security is undervalued if it is plotted below the Security Market Line.

  • True
  • False

Given the following exchange rates: US$ to Swiss franc = 1.0066; US$ to Canadian $ = 1.3269. the Swiss Franc-Canadian $ exchange rate is

  • 1.355
  • 1.3269
  • 1.3182
  • .7586

The traditional approach to capital structure proposes that a firm can lower its weighted average cost of capital and decrease its market value with the use of financial leverage.

  • True
  • False

Relative to number 4 above, the Canadian$ -Swiss Franc exchange rate is

  • 1.355
  • .7586
  • 1.3269
  • 1.3182

A warehouse that is the sole stocking point for the distribution system that it serves.

  • Central Distribution Center

The Modigliani and Miller (MM) approach to capital structure with corporate taxes states that the use of financial leverage lowers the company’s cost of capital and raises the firm’s value because interest in debt is not tax deductible.

  • False
  • True

4. The weighted average of an expected return from individual assets in the portfolio.

  • Expected portfolio return

ABS Corporation pays ordinary shareholders P 6 cash dividend at the end of every year indefinitely into the future. The ordinary shareholders’ required rate of return is 12%. What is the value of the ordinary share?

  • 50

Beta

  • Systematic Risk

An intermediate group, representing around 5-10% of the annual demand, usage or production value but some 20-25% of the total, that is paid less management attention.

  • B items

A classification used in inventory control where the demand for one item has a direct mathematical relationship with the demand for another higher level or parent component and where the demand for that item is ultimately dependent on the demand for the higher level or parent item.

  • Dependent Demand

Retained earnings are portion of the corporation's earnings not paid out as dividends but kept for possible reinvestment.

  • True
  • False

Which bike looks similar to a a road bike?

  • cruiser
  • mountain
  • triathlon
  • comfort/hybrid

It is the process of acquiring and selecting talents that enables the organization achieve its goals.

  • HR coordination
  • HR Planning
  • HR Acquisition
  • None of the above

A tactic to resist unfriendly mergers where the target corporation may retaliate with a tender offer to acquire the business of the tender offeror.

  • Reverse tender

An example of this would be the collection of supplier loads from the supplier by the retailer for delivery into the retailer’s own RDC.

  • Backhaul

Provisions about wages including prohibitions regarding wages and working conditions for special groups of employees such as employment of women, minors, house helpers, and home workers are also included.

  • Book III – Conditions of Employment
  • Book I of The Philippine Labor Code
  • Book II Labor Relations
  • Book IV - Health, Safety and Social Welfare benefits

The cost of current ordinary shares and retained earnings are the same but the cost of the new ordinary shares and retained earnings are not equal.

  • True
  • False

In strategy formulation, the forces that must be focused for industry analysis includes

  • all of these
  • ) customer’s bargaining power
  • supplier’s bargaining power
  • potential entrants in the market

The date the company distributes its dividend checks to the shareholders on record.

  • Ex-dividend Date
  • Record Date
  • Payment Date
  • Declaration Date

Which piece of gear is the most effective way to prevent a life-threatening injury when riding a bike?

  • bike pedals
  • helmet
  • shoes
  • eyewear

The kind of payment scheme on mergers that use a combination of securities to pay the new shareholders of the acquiring company.

  • Debt and Preferred Shares Financing

Recruitment Process:

  • True
  • False

The following are given for the two stocks of XYZ Co.

  • 16%
  • 12%
  • 18.4%
  • 13.92%

A project proposal with a 5 years life requires a new capital equipment worth P 2,000,000. It also requires an additional initial investment of P250,000, 60% of which is financed by trade credit. The new equipment has a useful life of 5 years, no salvage value and will be depreciated using the straight line method. The new equipment will result to an annual increase in sales of P800,000; increase in operating expenses of P 350,000 per year. Income tax rate is 32%.

  • 2,100,000
  • How much is the depreciable value of the equipment?
  • Answer:
  • 2,000,000
  • How much is the annual depreciation of the equipment?
  • 400,000
  • per year
  • How much is the operating cash flow for the first year?
  • 434,000

Often the first stage in outsourcing which involves a summary of the requirements being distributed to potential suppliers of goods and/or services.

  • Expression of Interest

Research suggests that a firm with greater multi-market contact is ___________ likely to initiate and attack, and ____________ likely to respond aggressively when attacked.

  • a. more, less
  • b. less, less
  • c. more, more
  • d. less, more

They are the decision makers who are willing to pay more than the expected value of an investment.

  • RISK-TAKERS INVESTORS

Contemporary approach to capital structure asserts that there is an optimal capital structure for every firm.

  • True
  • False

Which environment is strategies, management, employees, product, or services?

  • industry
  • internal
  • general external
  • global

2. Listing of possible events and their assigned probability.

  • Probability distribution

__ inputs in simulation process that includes the circumstances beyond the control of the decision-makers.

  • PROBABILISTIC

_____________is when there are few major players.

  • oligopoly
  • monopoly
  • perfect competition
  • monopolistic

Which environment is population shifts, economic growth, environment, sweat shops, and child labor?

  • general external
  • industry
  • global
  • internal

What is the most important issue to understand when selling or buying a bike?

  • time
  • fit
  • cost
  • color

ABC Corporation’s beta is 1.6; the current rate of return on securities is 12%, estimated return of market portfolio yields14%.

  • 15.2%
  • 12%
  • 17.2%
  • 14%

Preferred shares have the right to receive assets of the company before ordinary shares is the event of the firm’s ______.

  • Liquidation

The uncommitted portion of a company’s inventory and planned production, maintained in the master schedule to support customer order promising.

  • Available to Promise

The ordinary equity share valuation model that assumes that dividends grow at a constant rate each period is the _____.

  • Gordon constant Growth Model

Developing a new product is an example of a preference capital investment decision.

  • True
  • False

Training and development of manpower motivates the workers and enhances their career growth. Systematic training programs also place the organization in a unique position to confront the growing and changing needs of manpower, technology and diversification of business activities

  • True
  • False

Unique risk is a function of a well-diversified portfolio per CAPM.

  • True
  • False

Individual securities are plotted in the SML and if a security is plotted below the SML, it is overvalued and the investor should expect a lower return for the assumed risk.

  • True
  • False

It is the simultaneous buying and selling of an asset to profit from a difference in the price.

  • Arbitrage
  • Forward Contracting
  • Devaluation
  • Upvaluation

In probability of two events, if one event will occur given that the other has occurred already , it is termed

  • None of the choices
  • Conditional probability
  • Joint probability
  • Mutually exclusive

Which is not a market structure?

  • monopolistic
  • oligopoly
  • strategic
  • perfect competition

Customer demand for which no stock is available and where the customer is prepared to wait for the item to arrive in stock.

  • Backorder A

Drag the word/phrase that corresponds to the statements below.Answers can be used more than once

  • Question text

ABC Corporation’s beta is 1.6; the current rate of return on securities is 12%, estimated return of market portfolio yields 14%.

  • 14%
  • 3.6%
  • 2%
  • 12%

Earnings per share are zero at financial break-even point.

  • True
  • False

Manpower development is typically a part of the organization's marketing strategy and aims to maximize human capital potential so as to attain strategic business objectives.

  • True
  • False

Declaration of stock dividends will change the total stockholders' equity.

  • True
  • False

How many different levels of strategy are there?

  • 1
  • 6
  • 4
  • 5

5. The decision-makers that requires higher rate of return on higher risk investment.

  • Risk-averse investors

These are internationally accepted commercial terms defining the respective roles of the buyer and seller in the arrangement of transportation and other responsibilities and clarify when the ownership of the merchandise takes place.

  • Inco Terms

A company’s ordinary share sells at P 35 and has an expected annual dividend of P1.60. Expected future dividend growth rate is 5% per year. Its current risk free rate is 4% and the expected return on the market is 10%. The share has a beta of 1.4. What is the cost of equity?

  • 12.40
  • %

It covers the major labor laws, the role/functions of the National Labor Relations Commission (NLRC), National Conciliation and Mediation Board (NCMB), and Bureau of Labor Relations (BLR). It give comprehensive discussion on labor organization, collective bargaining, agreements, grievance machinery and voluntary arbitration.

  • Book II Labor Relations
  • None of the above
  • Book III – Conditions of Employment
  • Book IV - Health, Safety and Social Welfare benefits

This can be valuable in providing digital knowledge about what is in a shipment in a way that it can be used to eliminate manual data entry of each shipment.

  • ASN Data
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