Homework Exercise 7 – Derivatives Homework Exercise 7 – Derivatives Question Investment Analysis & Portfolio Management AD 717 OL Homework Exercise 7 - Derivatives 1) On June 21, 2011, the GE’s stock closed at $18.81 per share. The accompanying table lists the prices for GE’s exchange-traded options. Using this data, calculate the payoff and the profit for each of the following September expiration options, assuming that at the September expiration the value of the stock was $17.72. a) Call option X = $17 b) Put option x = $17 c) Call option x = $19 d) Put option x = $19 e) Call option x = $15 f) Put option x = $21 2. It is mid July. You believe that Walmart stock which is currently priced at $53.00 will appreciate significantly over the next several months. A long-term equity call option (LEAPS) with an expiry in mid January and a strike price of $52.50 is available at a price of $2.50. You have $10,600 to invest. You consider 4 alternatives: a) Use your entire amount of funds to buy the stock outright b) Use the entire amount to purchase the stock on margin. Assume that the minimum margin requirement is 50% and that you will pay 7% (annually) on borrowed funds. c) Use the entire amount of funds to buy LEAPS call options with the January expiry date. d) Buy options for 200 shares and use the rest of the money to buy government bills paying 1% per year. (hence figure on 6 months of interest). For simplicity ignore any brokerage charges Calculate the net gain or loss from each strategy as of mid January assuming that the price of stock is: Gain / Loss from Investment in Walmart Investment Strategy Stock Price in Mid January $45 $50 $55 $60 Stock Outright Stock on Margin All Options Options & Bills 3) One of the financial instruments that attracted so much hostile fire in the analysis of the recent financial crisis were “Synthetic Collateralized Debt Obligations” (synthetic cdos) which used “synthetic debt” as its collateral. Describe how you could use a combination of risk free investments and derivatives to create the same pay-off / risk profile as if you were holding a corporate bond, say for IBM. Explain how the pay-off / risk profile is the same (a) if the company remains afloat and pays all of its debt obligations on time or (b) if the company defaults on its debt obligations. 4) A stock is currently priced at $50. The risk free interest rate is 10% per year. What is the value of a call option on the stock with a strike price of $45 due in one year? a) Using the Binomial valuation approach, assume that at the end of one year the value of the stock could either have increased to $60 or decreased to $40. b) Using the Black-Scholes model, assume that the annual volatility (standard deviation) of the stock price is 25%. 5) On June 29, 2010 the S&P 500 stood at 1308.44. The one year futures price on the index was 1278.7. The 1 year risk free rate was 0.238%. Using the Spot-Futures Parity relationship, calculate the annualized expected dividend yield from the S&P 500 Index. 6) Futures contracts for copper are traded on the COMEX exchange. The standard contract is 25000 pounds. The initial margin is $5738 per contract and the maintenance margin is $4250 per contract. The 6 month futures price is $4.321 per pound. The spot price today is $4.204. What will be the annualized rate of return for an investor purchasing copper futures under the following spot prices at maturity? Spot Price at Maturity $4.25 $4.30 $4.35 $4.40 Spot Value of 1 contract at Maturity Futures price of 1 contract (today) Net Gain / Loss 6 month rate of return Annualized Rate of Return 7) Joan Tam, CFA, believes she has identified an arbitrage opportunity for a commodity as indicated by the following information: Current Spot Price: $120 Futures Price (1 Year): $125 Interest Rate (1 Year): 8% Initial Margin to purchase Futures $7.50 a) Describe the strategy and transactions that Joan should use to take advantage of this arbitrage opportunity. b) Calculate the arbitrage profit c) Verify the arbitrage profit by calculating the initial cash flows (when the transactions are entered into) and the profits for each of the spot prices at time T indicated below: Initial Cash Flow Spot Price at Time T 116 120 124 128 132 GE Exchange Traded Options Expiration Strike Call Put Option Price (Last) Volume Open Interest Option Price (Last) Volume Open Interest Dec 10 ... ... ... 0.08 217 3322 Sep 13 ... ... 870 0.06 20 6070 Dec 13 ... ... ... 0.15 8 2114 Jul 14 4.6 29 827 ... ... 204 Jul 15 3.7 1 1 0.02 210 15799 Sep 15 4 1 1280 ... ... 13893 Dec 15 4 1 409 0.3 380 3581 Jul 16 ... ... 542 0.03 222 3347 Aug 16 ... ... 597 0.12 191 1932 Sep 16 3.04 353 1919 0.2 375 78449 Dec 16 ... ... 250 0.49 690 4915 Jul 17 1.95 86 2503 0.06 124 11300 Aug 17 2.08 25 1150 0.23 362 21499 Sep 17 2.18 349 4196 0.34 1089 29426 Dec 17 2.45 15 479 0.72 105 16755 Jul 18 0.99 3537 7192 0.17 11672 26979 Aug 18 1.3 626 4138 0.41 1773 12694 Sep 18 1.38 376 12832 0.58 2698 40944 Dec 18 1.79 120 2683 1.03 2594 10423 Jul 19 0.35 36899 61396 0.53 9103 32734 Aug 19 0.65 2031 16488 0.78 3856 21731 Sep 19 0.77 4565 25395 0.96 101 64748 Dec 19 1.22 274 7206 1.51 1046 13989 Jul 20 0.06 4781 22943 1.19 222 19283 Aug 20 0.25 4649 28705 1.47 15 17267 Sep 20 0.38 4856 31045 1.56 32 36015 Dec 20 0.76 962 11433 2.06 67 9845 Jul 21 0.01 169 25400 2.15 20 2592 Aug 21 0.08 348 10613 ... ... 1990 Sep 21 0.15 786 24122 2.41 509 9623 Dec 21 0.45 2224 11789 2.87 1 1250 Jul 22 0.01 1318 9329 ... ... 592 Aug 22 0.03 195 3487 3.18 1 1189 Dec 22 0.24 909 7256 ... ... 948 Sep 22.5 0.04 417 34725 3.75 4 20599 Jul 23 ... ... 3399 4.21 2 904 Aug 23 0.02 25 1712 ... ... 441 Dec 23 0.12 590 12298 ... ... 977 Sep 24 0.02 118 7820 ... ... 1069 Dec 24 0.07 20 3177 5.35 1 1454 Aug 25 ... ... 92 6.4 10 ... Sep 25 ... ... 7223 6.36 186 1088 Dec 25 0.04 250 5511 ... ... 602 Sep 30 ... ... 2756 11.35 76 1240 *Underlying stock price represents listed exchange price only. It may not match the composite closing price. Source: Wall Street Journal
A company has $56,000 in cash; $12,000 in accounts receivable A company has $56,000 in cash; $12,000 in accounts receivable Question 1. A company has $56,000 in cash; $12,000 in accounts receivable; $25,000 in short-term investments; and $100,000 in merchandise inventory. The company also has $60,000 in current liabilities. The company's quick ratio isA. 3.217.B. 1.550.C. 0.933.D. 1.133.2. Patty's Baker has cost of goods sold for the years 2011, 2010, and 2009, respectively, of $28,600, $26,900, and $25,600. If 2009 is the base year, the trend percentage for 2011 isA. 11.72%.B. 111.72%.C. 5.08%.D. 105.08%.3. If total assets are $6,000, what is the common-size figure of cash, assuming that cash has a balance of $2,400?A. 100.0%B. 40.0%C. 120.0%D. 60.0%4. Operating cash flows affectA. current assets and current liabilities.B. equity accounts.C. long-term liability accounts.D. long-term asset accounts.5. If current assets were $100,000 in 2009 and $88,000 in 2010, what was the amount of increase or decrease in percentage terms from 2009 to 2010? (Round to the nearest percent.)A. Increase of 14%B. Increase of 12%C. Decrease of 12%D. Decrease of 14%6. Casey Company has an accounts receivable turnover of 36 days, an inventory turnover of 77 days, and an accounts payable turnover of 40 days. Casey's cash conversion cycle is _______ day(s).A. 81B. 1C. 73D. 1537. Casey Company has 5,000 shares of treasury cost that it purchased for $13 per share. It later resold 2,000 of those shares for $17 per share. The amount to be credited to Paid-in Capital—Treasury Stock isA. $30,000.B. $8,000.C. $34,000.D. $26,000.8. Isaiah Corporation's Accounts Receivable increased by $35,000, and its Accounts Payable decreased by $18,000. What is the net effect on cash from operations under the indirect method?A. ?$18,000B. ?$53,000C. +$17,000D. +$35,0009. Operating expenses—other than depreciation—for the year were $335,000. Prepaid expenses decreased by $7,000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would beA. $342,000. B. $328,000.C. $7,000.D. $335,000.10. For vertical analysis purposes, the base item on the income statement isA. net income.B. total expenses.C. gross profit.D. net sales.11. Casey Company has a $2,400 credit balance in Paid-In Capital— Treasury Stock. It sells 500 shares of treasury stock that the company reacquired at $21/share, for $18/share. After the transaction, what will the balance be in the Paid-In Capital in Excess of Par— Treasury account?A. $900 credit B. $3,900 credit C. $900 debit D. $1,500 debit12. Ryan Industries has an inventory turnover of 112 days, an accounts payable turnover of 73 days, and an accounts receivable turnover of 82 days. Ryan's cash conversion cycle is _______ days.A. 43B. 121C. 9D. 10313. The Isaiah Corporation Stockholders' Equity section includes the following information:Preferred StockPaid-in Capital in Excess of Par—Preferred Common StockPaid-in Capital in Excess of Par—Common Retained Earnings$22,000 2,980 48,000 3,400 7,350Total par value of the preferred and common stock isA. $70,000.B. $83,730.C. $77,350.D. $76,380.14. Earnings that a stockholder receives from a corporation are an example of which stockholder right? A. PreemptionB. LiquidationC. DividendsD. Vote15. Tammy Corporation has 350,000 shares of $3 par common stock outstanding. It has declared a 5% stock dividend. The current market price of the common stock is $7.50/share. The amount that will be debited to retained earnings on the date of declaration isA. $78,750.B. $131,250.C. $52,500.D. $183,750.16. Accounts receivable amounted to $215,000 at the beginning of the year and $245,000 at the end of the year. Income reported on the income statement for the year was $300,000. The cash flow from operating activities on the cash flow statement using the indirect method isA. $315,000.B. $300,000.C. $270,000.D. $330,000.17. What are the rate of return on stockholders' equity and the rate of return on common stockholders' equity (rounded to the nearest one-tenth of a percent) given the following information:Net IncomePreferred DividendsCommon StockCommon Stockholders’ Equity 1/1/2011 4,400,000 Total Stockholders’ Equity 1/1/2011 5,300,000 Total Stockholders’ Equity 12/31/2011 5,500,000A. Return on Stockholders' Equity: 6.5 %; Return on Common Stockholders' Equity: 7.6%B. Return on Stockholders' Equity: 7.8 %; Return on Common Stockholders' Equity: 8.9%C. Return on Stockholders' Equity: 5.6 %; Return on Common Stockholders' Equity: 6.7% D. Return on Stockholders' Equity: 8.1 %; Return on Common Stockholders' Equity: 9.2% 18. What is the rate of return on common stockholders' equity if sales are $100,000, net income is $22,700, and average common stockholders' equity is $86,000?A. The rate of return can't be determined from the information given.B. 26.4%C. 22.7%D. 86.0%19. If you own 500 shares (2% of a corporation's stock) and the corporation issues 15,000 new shares, how many of the new shares can you purchase under preemptive right?A. 0B. 300C. 500D. 80020. Which activities are computed differently using the two methods of formatting a statement of cash flows? A. Operating activitiesB. Both operating activities and investing activitiesC. Investing activitiesD. Financing activities
Hyland Company_Breakeven Analyasis Hyland Company_Breakeven Analyasis Question 5. TheincomestatementforHylandCompanyfor2014 appearsbelow: Hyland Company Income Statement For the Year Ended December 31, 2014 Salesrevenue(40,000 units) 1,000,000 Variableexpenses 700,000 Contributionmargin 300,000 Fixedexpenses 345,000 Netincome(loss) (45,000) Instructions Answerthe followingindependentquestionsandshowcomputationstosupportyouranswers: 1. Whatwasthecompany’sbreak-evenpointinsalesdollarsin2014? 2. Howmanyadditionalunitswouldthecompanyhavetosellin2015 (comparedto2014) in orderto earnnetincomeof$45,000? 3. Ifthecompanyisabletoreducevariablecostsby$4.50 perunitin2015 and othercostsandunit revenuesremainunchanged,howmanyunitswillthecompanyhavetosellinordertoearnanet incomeof$45,000?
general business data bank general business data bank Question 1. Managers succeed by focusing on fundamentals and knowing what's important. True False 2. The primary reason that companies fail is a change in the environment. True False 3. The four key elements that make the current business environment different from the past include globalization, technological change, the importance of knowledge and ideas, and collaboration across organizational "boundaries." True False 4. A global company is headquartered anywhere, but the managers all come from the United States. True False 5. The Internet can affect how and when people work. True False 6. Until recently the move to globalization was growing very quickly. Now the change from local to global has leveled off and countries are pushing back on global opportunities such that we may yet see a change back to localization. True False 7. Globalization affects only large companies. True False 8. It can be said that technology both complicates things and creates new opportunities. True False 9. Using personal technology such as a BlackBerry, means that you must be available all of the time to do the best job possible. True False 10. Knowledge management is a set of practices aimed at discovering and harnessing the competition's intellectual resources. True False 11. The most precious resources of an organization are people's expertise, skills, wisdom, and relationships. True False 12. Collaboration can occur between but not within organizations. True False 13. Better serving the customer can start with involving the customer more in company decisions, especially when it comes to discovering more about customer attitudes. True False 14. The key to company success is how much the industry in which it operates will affect society or how much it will grow. True False 15. The fundamental success drivers for an organization are innovation, quality, speed, and product delivery time. True False 16. Innovation is the introduction of new goods and services. True False 17. If an organization does not innovate, it will die. True False 18. Sometimes the most important innovation isn't the product itself but the way it is delivered. True False 19. Quality is the excellence of your product (including goods and services). True False 20. Total quality includes preventing defects before they occur. True False 21. Today, customers value both the quality of physical goods and the quality of services. True False 22. While many companies customize their products, which customers like, this is not an aspect of quality. True False 23. Service is the speed and dependability with which an organization delivers what customers want. True False 24. One dimension of service quality is making it easy and enjoyable for customers to experience a service or to buy and use products. True False 25. Corporate speed often separates the winners from the losers in business. True False
Accounting Misc. Multiple Choice Questions Answers Accounting Misc. Multiple Choice Questions Answers Question 1. Anderson Systems is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected. WACC: 9.00%Year 0 1 2 3 Cash flows -$1,000 $500 $500 $500 (Points : 2) $265.65$278.93$292.88$307.52 Question 2. 2. Taggart Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash flows -$1,150 $500 $500 $500 (Points : 2) 1.86 years2.07 years2.30 years2.53 years Question 3. 3. Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; RPM = 5.25%; and b = 1.30. Based on the CAPM approach, what is the cost of common from retained earnings? (Points : 2) 9.67%9.97%10.28%10.93% Question 4. 4. O'Brien Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 1.05. What is the firm's cost of common from retained earnings based on the CAPM? (Points : 2) 11.30%11.64%11.99%12.35% Question 5. 5. A company’s perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock? (Points : 2) 7.81%8.22%8.65%9.10% Question 6. 6. Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting? (Points : 2) Long-term debt.Accounts payable.Retained earnings.Common stock. Question 7. 7. Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. (Points : 2) A project’s NPV is found by compounding the cash inflows at the IRR to find the terminal value (TV), then discounting the TV at the WACC.The lower the WACC used to calculate a project’s NPV, the lower the calculated NPV will be.If a project’s NPV is less than zero, then its IRR must be less than the WACC.If a project’s NPV is greater than zero, then its IRR must be less than zero. Question 8. 8. Which of the following statements is CORRECT? (Points : 2) The regular payback method recognizes all cash flows over a project’s life.The discounted payback method recognizes all cash flows over a project’s life, and it also adjusts these cash flows to account for the time value of money.The regular payback method was, years ago, widely used, but virtually no companies even calculate the payback today.The regular payback is useful as an indicator of a project’s liquidity because it gives managers an idea of how long it will take to recover the funds invested in a project. Question 9. 9. Which of the following statements is CORRECT? (Points : 2) The internal rate of return method (IRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects.The payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects.The discounted payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects.The net present value method (NPV) is generally regarded by academics as being the best single method for evaluating capital budgeting projects. Question 10. 10. The internal rate of return is that discount rate that equates the present value of the cash outflows (or costs) with the present value of the cash inflows. (Points : 2) True False
Capital Budgeting: New Product Krispie Krinkles Capital Budgeting: New Product Krispie Krinkles Question James LaGrande had recently been appointed controller of the breakfast cereals division of a major food company. One of Jim's first assignments was to prepare the financial analysis for a new cold cereal, Krispie Krinkles.Mr. LaGrande discussed the product with the food lab that had designed it, with the market research department that had tested it, and with the finance people who would have to fund its introduction. After putting all the information together, he developed the following optimistic and pessimistic sales projections: Optimistic Pessimistic Year 1 $ 1,800,000 $ 1000,000 Year 2 $ 3,800,000 $ 1,400,000 Year 3 $ 5,200,000 $ 1,200,000 Year 4 $ 8,200,000 $ 1000,000 Year 5 $ 10,200,000 $ 600,000The optimistic predictions assume that the introduction of a popular product is successful. The pessimistic predictions assume that the product is introduced but does not gain wide acceptance and is terminated after 5 years. LaGrande thinks that the most likely results are halfway between the optimistic and pessimistic predictions.LaGrande learned from finance that this type of product introduction requires a predicted rate of return of 16% before top management will authorize funds for its introduction. He also determined that the contribution margin should be about 50% on the product, but could be as low as 42% or as high as 58%. Initial investment would include $3 million for production facilities, $2.5 million for advertising and other product introduction expenses, and $1.5 million for working capital (e.g., inventory). The production facilities would have a value of $800,000 after 5 years.Prepare a capital-budgeting analysis to determine whether to launch the product.
Read the “JET Copies” Case Problem on pages 678-679 of the text. Using simulation estimate Read the “JET Copies” Case Problem on pages 678-679 of the text. Using simulation estimate Question Read the “JET Copies” Case Problem on pages 678-679 of the text. Using simulation estimate the loss of revenue due to copier breakdown for one year, as follows:In Excel, use a suitable method for generating the number of days needed to repair the copier, when it is out of service, according to the discrete distribution shown.In Excel, use a suitable method for simulating the interval between successive breakdowns, according to the continuous distribution shown.In Excel, use a suitable method for simulating the lost revenue for each day the copier is out of service.Put all of this together to simulate the lost revenue due to copier breakdowns over 1 year to answer the question asked in the case study.In a word processing program, write a brief description/explanation of how you implemented each component of the model. Write 1-2 paragraphs for each component of the model (days-to-repair; interval between breakdowns; lost revenue; putting it together).Answer the question posed in the case study. How confident are you that this answer is a good one? What are the limits of the study? Write at least one paragraph.JET CopiesJames Banks was standing in line next to Robin Cole at Klecko’sCopy Center, waiting to use one of the copy machines. “Gee,Robin,I hate this,”he said.“We have to drive all the way over herefrom Southgate and then wait in line to use these copy machines.I hate wasting time like this.”“I know what you mean,”said Robin.“And look who’s here.Alot ofthese students are from Southgate Apartments or one oftheother apartments near us. It seems as though it would be morelogical ifKlecko’s would move its operation over to us,instead ofall ofus coming over here.” Case Problems 679James looked around and noticed what Robin was talkingabout. Robin and he were students at State University, and mostof the customers at Klecko’s were also students. As Robinsuggested, a lot of the people waiting were State students wholived at Southgate Apartments,where James also lived with ErnieMoore.This gave James an idea,which he shared with Ernie andtheir friend Terri Jones when he got home later that evening.“Look,you guys,I’ve got an idea to make some money,”Jamesstarted. “Let’s open a copy business! All we have to do is buy acopier, put it in Terri’s duplex next door, and sell copies. I knowwe can get customers because I’ve just seen them all at Klecko’s.Ifwe provide a copy service right here in the Southgate complex,we’ll make a killing.”Terri and Ernie liked the idea, so the three decided to go intothe copying business. They would call it JET Copies, named forJames, Ernie, and Terri. Their first step was to purchase a copier.They bought one like the one used in the college ofbusiness officeat State for $18,000. (Terri’s parents provided a loan.) The com-pany that sold them the copier touted the copier’s reliability, butafter they bought it,Ernie talked with someone in the dean’s officeat State,who told him that the University’s copier broke down fre-quently and when it did,it often took between 1 and 4days to getit repaired.When Ernie told this to Terri and James,they becameworried. If the copier broke down frequently and was not in usefor long periods while they waited for a repair person to come fixit, they could lose a lot of revenue. As a result, James, Ernie, andTerri thought they might need to purchase a smaller backupcopier for $8,000 to use when the main copier broke down.However,before they approached Terri’s parents for another loan,they wanted to have an estimate of just how much money theymight lose if they did not have a backup copier. To get this esti-mate, they decided to develop a simulation model because theywere studying simulation in one oftheir classes atState.To develop a simulation model,they first needed to know howfrequently the copier might break down—specifically, the timebetween breakdowns. No one could provide them with an exactprobability distribution,but from talking to staffmembers in thecollege ofbusiness,James estimated that the time between break-downs was probably between 0 and 6 weeks,with the probabilityincreasing the longer the copier went without breaking down.Thus,the probability distribution ofbreakdowns generally lookedlike the following:Next, they needed to know how long it would take to get thecopier repaired when it broke down. They had a service contractwith the dealer that “guaranteed”prompt repair service. However,Terri gathered some data from the college of business from whichshe developed the following probability distribution ofrepair times:Repair Time (days) Probability1 .202 .453 .254 .101 .00Finally, they needed to estimate how much business they wouldlose while the copier was waiting for repair. The three of them hadonly a vague idea of how much business they would do but finallyestimated that they would sell between 2,000 and 8,000 copies per dayat $0.10 per copy. However, they had no idea about what kind ofprobability distribution to use for this range ofvalues.Therefore,theydecided to use a uniform probability distribution between 2,000 and8,000 copies to estimate the number ofcopies they would sell per day.James,Ernie,and Terri decided that iftheir loss ofrevenue due tomachine downtime during 1 year was $12,000 or more, they shouldpurchase a backup copier. Thus, they needed to simulate the break-down and repair process for a number of years to obtain an averageannual loss ofrevenue.However,before programming the simulationmodel,they decided to conduct a manual simulation ofthis process for1 year to see ifthe model was working correctly.Perform this manualsimulation for JET Copies and determine the loss ofrevenue for 1 year.
Compensation, Pay structure Related MCQs Compensation, Pay structure Related MCQs Question Compensation/Pay structure 1. Which of the following is an example of wage criteria bias? A. Rich doesn’t give Suzanne a high increase in pay becausehe feels that a woman isn’t an effective employee. B. Rich doesn’t give Suzanne a high increase in pay becauseSuzanne’s pay is already at a low rate due to a poorlydesigned job evaluation. C. Rich doesn’t give Suzanne a high increase in pay becauseSuzanne hasn’t performed as well as is required for herjob.D. Rich doesn’t give Suzanne a high increase in pay becausethere’s not enough money in the budget to give every employee a raise. 2. A skill plan that’s based on depth rather than breadth focuses on the skills required to A. manage a warehouse.B. drive a forklift.C. manage people.D. perform all of the accounting tasks for an organization. 3. Andrew is performing a job evaluation using the point method. He just created a list of the different levels of skills required for each factor. Which step did Andrew justcomplete? A.Conduct the job analysis.B. Determine compensable factors.C. Scale the factors.D. Weigh the factors according to importance. 4. Kurt is currently working with the labor union that represents the employees in hisorganization on developing a compensation strategy. Which step of the total compensationstrategy formulation is he executing? A. Assessing total compensation implicationsB. Mapping a total compensation strategyC. Implementing the strategyD. Reassessing the strategy 5. Teresa is developing a Web site that will explain the organization’s pay and benefitspackage to its employees. Which step of the total compensation strategy formulation is she executing? A. Assessing total compensation implicationsB. Mapping a total compensation strategyC. Implementing the strategyD. Reassessing the strategy 6. Stephanie works in the 2” -bolt manufacturing division and Christine works in the 6”-bolt manufacturing division. Stephanie earns a higher wage than Christine because the 2”bolts are manufactured in an area where the cost of living is much higher than the areawhere the 6” bolts are manufactured. Which of the following is this an example of? A. Content C. Use valueB.Relative contribution D.Exchange value 7. Which of the following is an example of the ranking method being used to perform ajob evaluation? A. Using the job definitions that are provided on the Department of Labor Web site tocreate the different levels of positions within an organizationB.Creating 16 different descriptions in which each job within the organization will fitC.Creating a list of specific tasks for each job and placing a value on each one basedon how much they contribute to the organization’s missionD. Creating a list of specific skills required for each job and placing a value on eachbased on how much they contribute to the organization’s mission 8. Kevin just completed a job evaluation for his organization. After presenting his findingsto the HR director, he was told that the position of vice president didn’t have a highenough salary based on its level of responsibility and the position of maintenanceworker didn’t have a high enough salary based on its level of responsibility. Which of the following was missing from Kevin’s evaluation? A. Supports organizational strategyB.Supports work flowC.Fair to employeesD. Motivates behavior toward organizational objectives 9. Shanda is performing a job analysis, and she sent a questionnaire to all the employeesin the accounting department inquiring about the work that they perform. She noticedthat there was a great deal of variance among different people who all hold the sameposition. None of them could agree on the work that they perform. Which of the following is missing from her job analysis? A. ReliabilityC.AcceptabilityB. ValidityD. Usefulness 10. Brittany is collecting data for a job analysis, and she just finished collecting data onhow store managers teach selling skills to their new sales associates so that they willbe able to meet their individual daily sales goals. This is an example of which kind ofinformation? A. Identification C. Employee dataB.Content D.Essential elements 11. Which of the following is an example of higher wages based on human capital? A. Gus earns more than Seymour because Gus is a member of a labor union andSeymour isn’t.B.Gus earns more than Seymour because Gus is much better at negotiating salaryincreases than Seymour.C. Gus earns more than Seymour because Gus has been trained on all of themachines that are used on his manufacturing line.D. Gus earns more than Seymour because Gus has missed fewer days of work thanSeymour. 12. Forrest just gave his assistant a 3% raise because his assistant just took on theresponsibility of department budgeting. Which of the following policy choices didForrest just make? A. Internal alignment C.Employee contributionsB.External competitiveness D.Management 13. Ana Lisa has a company credit card on which she is allowed to purchase gas for hercar because her job requires her to drive a lot. This is an example of which form ofpay? A. Long-term incentive C. Benefits: work/life balanceB.Benefits: income protection D. Benefits: allowances 14. Paul works in a manufacturing plant where he is paid an hourly wage. In addition tohis hourly wage, he is also paid a bonus amount based on the amount of minutes thathe can reduce his per unit manufacturing time. Which of the following best describesPaul’s incentive plan? A. The pay is a constant function of production level, and the focus is on units of production per time period.B. The pay is a constant function of production level, and the focus is on time periodper units of production.C. The pay varies as a function of production level, and the focus is on units of production per time period.D. The pay varies as a function of production level, and the focus is on time period perunits of production 15. The Jeffreys Company has a dynamic workforce that deals with constantly changingobjectives that aren’t always easy to understand. It’s also a seasonal business, andorganizational success can change on an annual basis. For example, last year was itsbest year ever, but the year before was the worst year ever due to one season. Whatwould be the best strategy for the Jeffreys Company to pursue regarding rewards? A. Focus on a wide range of nonmonetary rewards and include a large bonus potential. B.Focus on a wide range of nonmonetary rewards but focus on higher base pay andlower incentives.C.Focus on large monetary rewards with a large bonus potential.D.Focus on large monetary rewards but focus on higher base pay and lower incentives 16. Chuck is an appliance salesman who is considered a risk taker. Which type of compensationplan would best motivate Chuck? A.A flat hourly wage so that Chuck is paid based on the amount of time he worksB. An annual salary so that Chuck is paid the same amount regardless of the amountof time he worksC.A pure commission schedule so that Chuck is paid based on the amount of merchandise that he sellsD.An hourly wage plus a small quarterly bonus based on store sales 17. Which of the following types of plans saw an increase in use between 1996 and 2002? A. Special recognition plans C.Gain-sharing plansB.Cash profit-sharing plans D. Stock option plans 18. The McKinney Company can produce 200 printed shirts per day. It sells those shirts for$10 each to retailers, who then sell them for $15 each. It costs the McKinney Company$5 to produce one shirt. The McKinney Company just hired Sam as a machine operator,and it can now produce 230 shirts per day. What is the marginal revenue of Sam’slabor? A.$150 C.$450B.$300 D. $2,300 19. The McKinney Company can produce 200 printed shirts per day. It then sells thoseshirts for $10 each to retailers, who then sell them for $15 each. It costs the McKinneyCompany $5 to produce one shirt. The McKinney Company just hired Sam as a Machine operator, and it can now produce 230 shirts per day. What is the marginal product of Sam’s labor? A.30 shirts C. 200 shirtsB.170 shirts D. 230 shirts
BBA 3651 Assessment IV BBA 3651 Assessment IV Question Question 1 1. Which of the following BEST describes courage? Answer Courage means conformity. Courage means settling for what others say. Courage means placing responsibility on others. Courage means pushing beyond the comfort zone. 4 points Question 2 1. One way to find personal courage is by: Answer doubting a higher purpose. drawing strength from within. releasing frustration and anger. developing your skills. 4 points Question 3 1. A follower can be a resource for the leader by: Answer informing the leader about their own ideas, beliefs, needs, and constraints. giving up idealized leader images. thanking the leader. building a relationship. 4 points Question 4 1. If a leader's actions and decisions contradict the best interests of the organization, effective followers should: Answer take a stand. follow the leader. sacrifice their personal integrity. follow passively. 4 points Question 5 1. Synergy is the combined action that occurs when people: Answer renew the physical, mental, spiritual, and social aspects of their lives. work together to create new alternatives and solutions. blame others. focus on preserving and enhancing relationships. 4 points Question 6 1. At Lehman Brothers, CEO Richard Fuld refused to admit mistakes as Lehman teetered on the brink of collapse. This example shows that: Answer courage means accepting responsibility. leaders initiate change. CEOs are honest. leaders make a real difference. 4 points Question 7 1. A follower can provide strength to the leader: Answer by being disrespectful. by contributing to the organization in areas that complement the leader's position. by trying to outshine the leader. by submissively following orders. 4 points Question 8 1. Which of the following BEST describes moral leadership? Answer Ignoring profit and loss Recognizing and adhering to ethical values Taking away from others to enhance yourself Rewarding unethical conduct 4 points Question 9 1. Which followership style do the government appointees often demonstrate due to their own agendas and a short period of time in which to implement them? Answer Pragmatic survivor Conformist Passive follower Alienated follower 4 points Question 10 1. Which of the following provides opportunity when people have different viewpoints because the differences present new opportunities? Answer Think win-win Seek first to understand, then to be understood Synergize Sharpen the saw 4 points Question 11 1. How does a leader find the courage to step through fear and confusion to act despite the risks involved? Your response should be at least 200 words in length. You are required to use at least your textbook as a source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. Answer Question 12 1. What is courage, and why is whistle blowing an act of courage? Your response should be at least 200 words in length. You are required to use at least your textbook as a source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
PSY 280 Final Exam MCQs PSY 280 Final Exam MCQs Question PSY 280 Marriage and Family Text: Marriages and Families: Making Choices in a Diverse Society 10th Edition, 2009 ISBN: 13: 978-0-495-39092-3 Authors: Mary Ann Lamanna and Agnes Riedmann Publisher: Thomson Learning, Inc. Multiple Choice Questions (Enter your answers on the enclosed answer sheet) 1. In 2005, the average size of a u.s. household was 4.14 people. 3.14 people. 2.57 people. 1.1 people. According to the text, marriage remains an almost experience; 91 percent of adults have been married or plan to marry. universal surreal e. rare d. unreal 3. Over the past four decades, fertility in the United States has stayed about the same. increased dramatically. e. declined. d. fluctuated substantially. In 1957, the total fertility rate was about 3.6 children per woman. For the last decade and a half, it has been child/children per woman. o , Ie;,;, than one b. one e. around two d. about three 5. The text reports that rates of childlessness seem to be increasing. leveling off. e. decreasing. d. fluctuating. 6. The text reports that divorce rates continue to increase annually. are much lower today than in the past. e. have stabilized, although they remain at high levels. d. are skyrocketing. 7. The divorce rate has been in decline for more than two decades. continues to increase over time. will probably never level off. will always remain at 50 percent of first marriages. 8. ______ Americans are most likely of all age groups to be living alone. Teenaged College-age Middle-age Older What is the primary reason, according to the text, that the transition to adulthood has become elongated? it takes longer to earn enough to support a family more children are deciding not to attend college freeloading is easier young adults are marrying later The stage of the family life cycle comes to an end with the arrival of the first child. singlehood newly established couple families with adolescents aging families 11. What marks the end of the family life cycle, according to the text? divorce the death of the last person with the family surname the death of a spouse the children leaving home The view that the family is an enduring social institution because of the important tasks it performs for society - reproduction, emotional support, socialization of children - is the perspective. structure-functional family relationships interactionist family systems According to psychologist Jeffrey Arnett, which of the following criteria are NOT among those necessary for adulthood? accept responsibility for yourself make independent decisions become financially independent get married The structure-functional theoretical perspective views the family as performing at least three important functions. Which of the following is NOT one of these? raising children responsibly providing economic support mate selection providing emotional security Suppose that a law states: "The husband is the head of the household. As such, he will establish a place and a mode of living and the wife must conform thereto. The husband must support his wife and minor children out of his labor. The wife must assist him insofar as she is able.This hypothetical law is consistent with the focus of which theoretical perspective? conflict structure-functional interactionist family ecology The perspective, which calls attention to cross-cultural variation in family structure, points out that all societies look to families to accomplish some roles/tasks, even though they may differ from one another regarding how it is arranged for these tasks to be accomplished. feminist family systems exchange structure-functional Advocates supporting the perspective frequently argue that the nuclear family is the norm, while their opponents refuse to view the nuclear family as normal, natural, or best. feminist exchange structure-functional conflict Being at war does affect American families, since of U.s. service members are married, and almost have children. ten percent; twenty percent one quarter; half twenty percent; forty percent half; three quarters Almost percent of families in the United States were classified as"working poor" in 2004 (at least one wage earner, but below poverty-level incomes). 5 7 10 12 rne divorce rate tor military marriages, as compared to civilian couples, is ____ (personnel) and (officers). higher; the same similar; higher higher; similar similar; lower Economists are divided as to whether the increasing of the economy - more outsourcing of jobs to other countries and the replacement of manufacturing by service jobs - is rendering the economic foundation of the American family more precarious or is opening new opportunities. industrialization naturalization globalization elevation The income of the bottom 60 percent of Americans has since 1979. skyrocketed steadily climbed dropped barely budged The text points out that white-collar jobs, especially those in technological and engineering fields and some financial services, are moving overseas to which two countries? India and China Spain and Italy Kenya and South Africa England and Germany 24. One in children in the United States is in poverty. 10 8 6 2 25. According to the text, race is a social construction. biological category. genetic grouping. separate category distinguished by certain biological markers. The 2000 census employed five major racial categories. Which of the following is NOT one of these? white Black or African American Hawaiian or other Pacific Islander multicultural 27. One cultural message that is sent about being a involves men being expected to distance themselves from anything considered feminine. sensitive father good worker "real man" stud 28. The cultural expectations for men include all but which of the following? occupational and financial success confidence and self-reliance nurturing and tenderness responsible for military defense An alternate for men emphasizes adventure, sometimes coupled with violence and/or the need to outwit, humiliate, and defeat other men in barroom brawls, contact sports, and war. cultural message gender identity feminine script gender role The pivotal expectation in for a woman requires her to offer emotional support. occupational roles femininities the parenthood role being a lover A feminine expectation that has emerged over the past twenty years is that of the II woman": independent, ambitious, and self-confident. bureaucratic ideal professional powerful but lonely According to the text, more and more women are entering nontraditional occupations such as the military. teaching. homemaking. nursing. One alternate stereotypical white working-class male response to economic disadvantage and social change involves all but which of the following? a denigrating and hostile critique of blacks and other minorities the "hypermasculinity [of] shop floors, motorcycle clubs, and urban gangs" a renewed sense of family responsibility criticalness towards women Traditionally, the ideal woman has several stereotypical traits. Which of the following is NOT one of these? physically attractive not too competitive a good listener career ambition During the 1980s, a new cultural message about men emerged. According to this message, the II II male or "new man" is emotionally sensitive and expressive, valuing tenderness and equal relationships with women. girly feminine liberated emasculated The cultural script for the "strong black woman" emphasized certain qualities. Which of the following is NOT one of these? submissiveness independence assertiveness employed From a(n) perspective, we consider that humans are designed for the purpose of transmitting their genes to the next generation. interactionist social conflict structure functional biosocial According to the perspective, men are inclined toward casual sex with many partners, whereas women are inclined to be selective and monogamous. structure-functional biosocial exchange interactionist From the exchange perspective, what a person expects out of a relationship is referred to as relative orientation. perspective. comparison level. satisfaction level. In the model of sexual satisfaction, satisfaction is seen to depend on the costs and rewards of a sexual relationship, as well as the participant's comparison level. interactionist interpersonal exchange social conflict developmental The interactionist perspective emphasizes the interpersonal negotiation of relationships in the context of sexual scripts. exchange components. comparison level. gender roles. According to the theoretical perspective on human sexuality, women and men are seen as being influenced by cultural messages about how we are to be sexual. developmental interpersonal exchange interactionist structure functional In a(n) society, sex is defined as a physiological activity, valued for its procreative potential. patriarchal matriarchal egalitarian culturally diverse Within the scope of sexuality, orgasm is important for women as well as for men, and sex is not only, or even primarily, for reproduction, but is an important means of enhancing human intimacy. patriarchal instrumental expressive postmodern The proportion of divorced and widowed is lower among an indication of their strong cultural commitment to lifelong marriage, and their average lower age. Hispanics non-Hispanics whites African Americans Asian Americans In 1970,36 percent of women age twenty through twenty-four were never married; by 2005, that figure had risen to percent. 40 50 65 75 Permanence and sexual exclusivity are two every important elements of the marriage a. dialogue. b. premise. c. contract. d. dynamic. Bill and JoAnn have recently married and have made a commitment to each other that they will keep each other as the most important people in their lives, and stay together as long as they live. Bill and JoAnn's joint commitment reflects the expectations of self-disclosure. permanence. emotional devotion. fidelity. Zack and Mikayla have recently married and have agreed that they will only have sexual relations with each other. This agreement reflects the expectations of the love relationship. primariness. sexual exclusivity. self-disclosure. Social scientists have defined the family as a -a fundamental component of social organization. social institution individual contract familial norm unit of population 51. (having more than one spouse) is culturally accepted in many parts of the world. Heterogamy Homogamy Polyandry Polygamy 52. What is the key function of marriage for most Americans? a practical, economic institution love and ongoing emotional support childbearing and rearing merging two families Marria With a group of other married couples, Maureen and Jim regularly exchange partners in order to engage in purely recreational sex. This reflects a practice known as "musical beds:' "marriage alternatives:' "fun time:' "swinging:' 54. Singles are less likely to return home when _ their parents have recently moved their parents have been divorced or remarried they have a child out of wedlock they struggle to find a job 55. The text points out that, in American society, communes have existed throughout its history. have never appeared. are a very recent development. began to develop in the 1960s. 56. A is a situation or place characterized by group living. home retirement community commune gathering Communal living may be one way to deal with problems associated with all EXCEPT which of the following? aging unattached singlehood single parenthood sexual permissiveness 58. Communal living is designed to provide _ financial stability social support and companionship romantic involvement sexual expressiveness 9. Today, approximately million U.s. heterosexual couples cohabit. 1.5 2.5 3.5 5.5 (as per book page 199 answer should be 6.8.. so I ahve choosen the nearest to it)About percent of u.s. women age 15 through 45 are currently cohabiting with a male partner. 1 3 5 9 According to the text, percent of women aged 15-45 have cohabited at some time in their lives. about 5 close to 10 just over 25 just over 50 The text reports that approximately percent of cohabitants are age 65 and over - a fifty percent increase since 1990. 5 15 25 over 30 63. In much of the world, particularly in parts of Asia and Africa that are less Westernized, parents have traditionally their children's marriages. arranged interfered in paid for organized Today, in countries where arranged marriages used to be the norm, it is more common for the children to marry only when they themselves accept their parents' choice. Unions like these are called _ agreed-upon marriages conceded marriages reluctant marriages assisted marriages In terms of mate selection patterns, the United States is an example of what cross-cultural researchers call a culture. nationalized marriage cross-national collectivist free-choice Arranged marriage developed in societies based on strong extended family ties. capitalist collectivist primitive postindustrial With global westernization, are replacing arranged marriage as the preferred way to select mates throughout the world. non-traditional unions participant-run marriages free choice marriages individual unions In studying shared parenting, Diane Ehrensaft identified three factors that affected both a father's dedication to everyday parenting and the mother's commitment, too. Which of the following is NOT one of these? Many men and their wives were strongly influenced by the feminist movement or other 1960s ideologies that kept them going during the more difficult times. Many of the mothers were intrinsically committed to elementary education. Many of the fathers were in occupations related to children, such as academic child psychology. Both parents tended to have good job security, so they could risk the displeasure of their supervisors in giving time to parenthood. The text refers to as the degree to which partners agree with and support each other as parents. partnering parenthood mutual support parenting parenting alliance allied parents In terms of children's behavior problems, aggression, lying, cheating, running away from home, disobeying at school, and delinquency are all examples of externalizing. internalizing. disorganization. anomie. In terms of children's behavior problems, withdrawal, depression, and anxiety are all examples of anomie. internalizing. externalizing. psychoses. Researchers have consistently found a link between and externalizing and internalizing in children. age of child gender ethnicity marital conflict The correlation between interparental conflict and behavior problems in children held true regardless of whether the parents were married or divorced. black or white. overtly or covertly violent. conflictual with the children or not. The text points out that shared parenting is probably more satisfying for parents and effective for children when both parents use which parenting style? authoritarian laissez-faire authoritative egalitarian 80. Men with children work compared to childless men, on average. decreased hours increased hours less about the same The Census Bureau only considers those whose wives worked full time as ____ -' also called househusbands. stay-at-home-dads unemployed egalitarian slackers According to the u.s. Bureau of Labor Statistics from 2006, wives earn more than their husbands in percent of couples. 10 25 30 50 Brad and Janet have been married for 10 years. Janet is a prosecuting attorney. Brad stays home to care for the house and family. The text would identify Brad as a good provider. role-reversed father. poor provider. househusband. Today, the statistical norm among married couples is the marriage. dual-career male-as-sole-provider two-earner female-as-sole-provider One year into marriage, the average spouse says 'I love you,' hugs and kisses their partner, makes their partner laugh, and has sexual intercourse ____ as often as when they were newly wed. twice just about half one quarter In his most recent publications, Nick Stinnett has used the term "strong families;' by which he largely means attributive. cohesive. consensual. generalized. When Nick Stinnett made his observations offamily strengths, six qualities stood out. Which of the following is NOT one of these? appreciation for one another arrangement of personal schedules to be together a high degree of commitment an excess of consensual validation SOciologist/counselor Carlfred Broderick has listed certain important positive results of good listening. Which of the following is NOT one of these? The attitude of listening itself shows love, concern, and respect. Listening can reveal faults in the relationship. The avoidance of interrupting and criticism prevents the sending of negative messages. People discover how things actually look from a spouse's or partner's point of view. According to Shelly Gable's research the "correct" response by one partner to the other's having something positive happen is characterized by active enthusiasm. measured evaluation. sympathetic understanding. controlled argumentation. The text points out that it is only in the present situation, in which neither patriarchal nor egalitarian norms are firmly entrenched, that marital power is negotiated by individual couples and the power of husbands and wives may be a consequence of their resources. patriarchal matriarchal power non-specific transitional egalitarian Virtually all research indicates that women's satisfaction with is strongly associated with women's relationship happiness, marital commitment, and depression and with the risk of marital disruption. the fairness of their partners' contributions to household work their sexual fulfillment their career and outside pursuits relationships with in-laws 92. Since 1965, trends in average weekly housework hours for men and women show: men do more housework than women there has been a significant increase in men's share of the housework, although the amount oftime spent is still not equal nothing has changed since 1965 there is no significant trend Research on couples' -whether they pool their money and who controls pooled or separate money-is relatively recent. allocation systems financial marital status fund typing cash decisions A study of fifty-five instances of perinatal loss found that grief was still felt by some parents forty years later, whereas the majority reported _ occasional bouts of intense grief occasional mild grief slight depression no long-term grief According to the text, negotiating family boundary changes is particularly difficult when the loss of a family member is abrupt. certain. ambiguous. unexpected. Ambiguous loss may occur when a family member is physically present but psychologically absent, as in all BUT which of the following cases? alcoholic or mentally ill family members learning disabled children those suffering from Alzheimer's disease children with cognitive impairment or severe disabilities From the perspective, ambiguous loss is uniquely difficult to deal with because it creates boundary ambiguity in a family. conflict interactionist family development family systems Hetherington maintains that percent of those who obtain a divorce become "enhanced': 10 70 30 20 Which of the following is NOT one of sociologist Paul Bohannan's "stations" of divorce? emotional legal sexual psychic 100. David and Patricia have been married for ten years. They no longer reinforce, but rather undermine each other's self-esteem through endless large and small betrayals; they blame, rather than comfort each other. These conditions reflect the "station" of divorce. psychic emotional community legal