Archives: Quiz

You are evaluating a new project and need an estimate for your project’s beta. You have identified the following information about three firms with comparable projects: The unlevered beta for Blinkin is closest to: A) 0.95 B) 1.10 C) 1.00 […]

Consider the following top federal tax rates in the United States: Personal Tax Rates In 2000, assuming an average dividend payout ratio of 50%, the effective tax advantage for debt (t*) was closest to: A) 40% B) 24% C) 30% […]

Consider a four-year, default-free bond with an annual coupon rate of 4.5% and a face value of $1000. The YTM on this bond is closest to: A) 3.85% B) 4.20% C) 4.35% D) 4.40% Consider the following expected returns, volatilities, […]

Aardvark Industries is considering a project that will generate the following free cash flows: You are also provided with the following market value balance sheet and information regarding Aardvark’s cost of capital: Suppose that to fund this new project, Aardvark […]

Consider the following timeline detailing a stream of cash flows: If the current market rate of interest is 10%, then the present value of this stream of cash flows is closest to: A) $674 B) $600 C) $460 D) $287 […]

At an annual interest rate of 7%, the future value of $5,000 in five years is closest to: A) $3,565 B) $6,750 C) $7,015 D) $7,035 d’Anconia Copper is an all-equity firm with 60 million shares outstanding, which are currently […]

Which of the following statements is FALSE? A) When stocks are perfectly positively correlated, the set of portfolios is identified graphically by a straight line between them. B) An investor seeking high returns and low volatility should only invest in […]

You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last for 17 years. You expect that the drug will produce cash flows of $10 million in its first year and that […]

The beta for the market portfolio is closest to: A) 1 B) 0 C) Unable to answer this question without knowing the markets expected return D) Unable to answer this question without knowing the markets volatility The NPV profile A) […]

Consider the following timeline: If the current market rate of interest is 7%, then the future value of this timeline as of year 3 is closest to: A) $1720 B) $1500 C) $1404 D) $1717 When using the internal rate […]

Rockwood Industries has 100 million shares outstanding, a current share price of $25, and no debt. Rockwood’s management believes that the shares are under-priced, and that the true value is $30 per share. Rockwood plans to pay $250 million in […]

Additional Case 6.2 Terra Alta employs nearly 15,000 workers worldwide. The firm wants to reduce its workforce through an early retirement program. The firm has hired you to organize and implement the program. Employees over age 58 are eligible, but […]

Base compensation refers to: A) health insurance and time off. B) fixed pay received on a regular basis. C) perks determined by status within the company. D) bonuses that underpin the employee’s total compensation. Workforce diversity can most likely enhance […]

The National Labor Relations Board: A) was created by the Taft-Hartley Act. B) is a federal agency within the Department of Labor. C) is an independent federal agency created to administer U.S. labor law. D) is a federal board of […]

ROWE policies are primarily implemented to: A) provide firms with a flexible workforce. B) improve employees’ work-life balance. C) attract recent college graduates. D) minimize compensation costs. In ________, one party focuses on convincing its counterpart that the cost of […]

Odette is talking with one of her employees about his inappropriate behavior on the job. She explains the negative consequences the employee faces unless he changes his behavior. Odette is most likely involved in: A) an implied contract. B) employee […]

Which of the following is LEAST likely a negative aspect of career development programs that foster unrealistic advancement expectations? A) Employee dissatisfaction B) Poor performance C) Increased turnover D) Discrimination Companies most likely attempt to manage their turnover rates because […]

Cecilia is observing assembly line workers performing their tasks. She’s watching to see who they interact with, what machines they use, and how much they are supervised. Cecilia is most likely conducting a: A) work flow analysis. B) performance appraisal. […]

Which of the following is NOT one of the methods Marriott uses to handle employee grievances? A) Assigning a mediator to handle disputes B) Creating an employee hotline for complaints C) Developing a legal team to administer decisions D) Establishing […]

A firm with too many management layers and bureaucratic work processes would most likely benefit from: A) rightsizing. B) discharges. C) downsizing. D) early retirements. Which of the following is intended to keep employees up-to-date on important events and provide […]

Workers who are hired to deal with short-term increases in a business’ workload are known as: A) flextime workers. B) short-term workers. C) specialized workers. D) contingent workers. All of the following are key concerns about global outsourcing EXCEPT: A) […]

The variability of quality and content of OJT between businesses: A) is beneficial because of the increased diversity of abilities. B) makes it difficult for managers to judge the skill level of workers from other firms. C) makes OJT undesirable […]

Above-market compensation policies are more likely to: A) create an impression of innovation and success. B) improve employee morale and reduce employee turnover. C) affect employee cooperation more than any other business policy. D) reduce barriers between people who need […]

Bertha wishes to discharge one of her poorly performing employees. She has tried progressive discipline with no effect. She asks you, the HR manager, what she must do to discharge the employee. You should most likely tell her the policy […]

To minimize problems, a pay-for-performance plan should: A) appropriately link pay and performance. B) use pay-for-performance as a stand-alone program. C) downplay the rewards to avoid an over-focus on productivity. D) use a single-layer, simple program. Additional Case 7.1 Shannon […]

Wallace Consulting is a small firm with 60 employees. In the past, Wallace Consulting has experienced a high level of employee theft. Which of the following would be the LEAST effective method of preventing employee theft at Wallace Consulting? A) […]

If a team is paid based on meeting its production goals, and each member of the team must contribute a minimal percentage toward that goal to share in the team award, then the pay-for-performance system is: A) promoting increased employee […]

A legitimate use of employee attitude survey data is to: A) identify employees that should be terminated. B) decide what employee privileges to reduce. C) monitor the state of certain employee subgroups. D) evaluate the firm’s performance appraisal system. Sam […]

Based on Supreme Court rulings, it is best to say that employers may: A) make employment decisions based solely on affirmative action criteria. B) never use affirmative action criteria for making employment decisions. C) base employment decisions partially on affirmative […]

You have just been hired at Corpus Entertainment, Inc. (CEI) and as part of your contract, you sign an oath that you will not divulge information about your compensation to your co-workers or any other employee of CEI. You realize […]

An employee refuses to lobby for his boss’ favorite political candidate and is fired as a result. The courts would most likely: A) rule this to be a just cause termination. B) call this insubordination and uphold the termination. C) […]

Additional Case 8.3 The HR department at McBain Associates is putting together a multi-step training program to help managers appraise employee performance. The firm has experienced previous legal problems associated with improper performance appraisals, so HR needs to ensure that […]

Businesses are more frequently trying to control sexual harassment through: A) diversity seminars. B) employee training. C) job descriptions. D) performance evaluations. According to your text, which mechanism determines the overall quality of a firm’s human resources? A) Socialization B) […]

Firms that are high on uncertainty or that operate in volatile environments would benefit most from HR strategies that involve: A) variable pay and flexibility. B) control emphasis and fixed pay. C) centralized pay decisions and explicit job descriptions. D) […]

Additional Case 5.1 About a year ago, Powley Publishing began looking for a new managing editor for its home and garden magazine. The previous editor retired after 25 years on the job. The editors and the HR department debated about […]

Which of the following is an aspect of an organization’s “personality”? A) Empowerment strategies B) Outsourcing policies C) Litigation actions D) Market posture Individual career counseling is typically conducted by all of the following EXCEPT: A) managers. B) HR staff […]

How can managers minimize the influence of “liking” on performance evaluations? A) Participating in frame-of-reference training B) Keeping a performance diary on each employee C) Developing a sensitivity to organizational politics D) Conducting group, rather than individual, performance evaluations Additional […]

Mark lost his job at a large manufacturing company during downsizing. Which of the following ensures that Mark may continue his health insurance coverage? A) Consolidated Omnibus Budget Reconciliation Act B) Social Security Act C) Family and Medical Leave Act […]

Once an employee leaves an employer, that employee: A) loses all health insurance coverage. B) is immediately eligible for health insurance under Social Security. C) may pay for and keep their health insurance for 18-36 months. D) gains coverage under […]

Additional Case 6.3 MedEquip, a medical services company with 500 employees, has experienced an extensive business downturn, and a layoff is necessary. MedEquip managers expect a layoff to be problematic because the firm made verbal commitments to workers for lifetime […]

When setting up a compensation plan for salespeople to encourage them to service accounts, a ________ plan is the best choice. A) straight commission B) combination C) straight salary D) merit The first step to create general guidelines for conducting […]

Shirley’s husband has recently died. She is eligible for survivor benefits if she: A) is at least 55 years old. B) is at least 55 years old and has an unmarried child younger than 19 years of age. C) cares […]

Which of the following is NOT a criticism of skill-based compensation systems? A) Too much labor specialization B) Unspecific job qualifications C) Higher labor costs D) Workplace chaos Additional Case 5.3 You are a middle manager looking for a first-line […]

One of the most expensive cities in the world for expatriates to live in is currently: A) New York. B) London. C) Seoul. D) Paris. ________ is a type of electronic communication that allows the sender to leave a detailed […]

Employers concerned with employee exposure to workplace substances have implemented a number of strategies over the years to protect employees. ________ is one type of effort to identify employees susceptible to specific occupational substances. A) Genetic testing B) Fetal testing […]

Which of the following is an inappropriate question to ask during a job interview? A) “What is your maiden name?” B) “Have you ever been convicted of a crime?” C) “Are you willing to take a physical exam as a […]

Additional Case 17.2 Golden Rod is an electronics firm based in Detroit with subsidiaries in several countries including Indonesia, Egypt, Argentina, and Thailand. The top management positions in these subsidiaries are filled by U.S. citizens. Golden Rod is planning on […]

Owen, a manager at Metro Manufacturing, has an employee who is currently taking workers’ compensation leave. It is Owen’s responsibility to ensure that his employee’s claim is legitimate. Which of the following actions would be LEAST effective for Owen’s task? […]

Garden of the Gods’ (GOTG) employees are compensated according to their organizational level, with upper-level managers receiving more compensation than lower-level managers. GOTG uses a(n) ________ pay system. A) elitist B) egalitarian C) internally equitable D) knowledge-based Division or corporate […]

Dorothy discovers that her employer is paying female managers about 15% less than male managers with the same responsibilities. Dorothy’s employer is violating: A) Title VII of the Civil Rights Act. B) the Civil Rights Act of 1991. C) Executive […]