Question : 61) What Bleach’s and Bleach-2’s residual incomes, based current values, respectively? : 1196218

 

61)

What are Bleach’s and Bleach-2’s residual incomes, based on current values, respectively? 61)

______ A)

$115,340; $80,000 B)

$37,500; $116,250 C)

$110,000; $67,500 D)

$67,500; $110,000 E)

$116,250; $37,500

62)

If the exchange rate at the end of the a foreign subsidiary’s first year was 5 fidgets to 1 Canadian dollar, and if it was 8 fidgets to 1 Canadian dollar at the end of the second (current) year, what exchange rate should be used to convert total assets if we want to calculate the company’s ROI in Canadian dollars? 62)

______ A)

the rate estimated to be in effect when the ROI is to be reported in the financial statements B)

the average rate for the year, assuming that the rate changed approximately evenly throughout the year C)

the rate in effect when the ROI is calculated D)

it would be double-counting to convert the assets – leave both assets and income in fidgets and the exchange rate for the numerator cancels out the exchange rate for the denominator E)

the rate in effect when the assets were acquired (ie. 5 to 1)

63)

________ describes contexts in which an employee prefers to exert less effort than the effort that the owner wants because the employee’s effort cannot be accurately monitored and enforced. 63)

______ A)

Incentive compensation B)

Moral hazard C)

Management compensation D)

Executive compensation E)

Goal congruence

64)

The absence of good performance measures restricts the owner’s ability to motivate managers through 64)

______ A)

rewards for products. B)

compensation. C)

non-financial rewards. D)

performance-based incentives. E)

monetary rewards.

65)

Which of the following statements is TRUE relative to performance evaluations? 65)

______ A)

Managers should be evaluated on all items they affect regardless of the control they exert over them. B)

Managers should not be evaluated on the things they can affect if the factors are not completely controllable. C)

Managers should be evaluated on things they can affect. D)

Managers should be evaluated for the whole organization’s performance. E)

Sales people cannot completely control the level of sales.

66)

The benefits of tying performance measures more closely to a manager’s efforts encourage the use of 66)

______ A)

performance input measures. B)

financial measures. C)

nonfinancial measures. D)

moral measures. E)

nonfinancial and financial measures.

67)

Measurement of one group’s performance against the best possible level of performance exhibited by another group, either inside or outside the organization, is known as 67)

______ A)

performance-variation analysis. B)

benchmarking. C)

comparative analysis. D)

teamwork analysis. E)

competition analysis.

68)

Team incentives encourage cooperation by 68)

______ A)

letting individuals help one another as they strive toward a common goal. B)

changing management style. C)

rewarding all teams members by the same amount. D)

forcing people to work together on difficult tasks. E)

rewarding team members individually.

69)

Which type of compensation is most prevalent when a satisfactory performance measure cannot be designed? 69)

______ A)

bonus based on ROI B)

stock options C)

dividends D)

salary E)

bonus based on ROI and/or RI

70)

How should environmental and ethical issues affect managers’ performance evaluations? 70)

______ A)

Socially responsible companies set aggressive targets for income and ROI, which must be met before environmental and ethical issues become relevant. B)

Socially responsible companies include environmental and ethical targets in managers’ performance evaluations. C)

Environmental responsibilities are met by adhering to the law of the land (eg. pollution laws). D)

Illegal behaviour is not part of management’s concern, unless it affects the bottom line. E)

Issues that may be ethical concerns in Canada (eg. bribery) may not be illegal in other countries, and multi-national companies must adhere to local custom.