BUS475 final part 2 1 
BUS/475 Capstone Final Exam part 2 Study Guide
1. The market opportunities most relevant to a particular company are those that Answer: offer the best growth and profitability.
2. Printing Equipment (NPE) produces equipment that helps to print newspapers and magazines. The company sells directly to printers and through wholesalers. Its salespeople negotiate prices with individual customers and often have to match competitors' prices. NPE has a new product, the Gutenberg NP201, with some competitive advantages now, but competitors are expected to follow quickly with similar products. The new product is being introduced into a market with elastic demand. In regard to freight charges for its equipment, NPE's invoice reads, "Seller pays the cost of loading equipment onto a common carrier. At the point of loading, title to such products passes to the buyer, who assumes responsibility for damage in transit, except as covered by the transportation agency." Answer: Skimming pricing
3. One reason for international investment is that Answer: the economies of many countries are growing faster than that of the U.S.
4. In what situations are notes payable used in lieu of accounts payable? Answer: To give the lender formal proof of the obligation, for collection of debt purposes, and to require the borrower to pay interest 5. Which of the following statements about ethical behavior in business is true? Answer: The legal environment sets the maximum standards of ethical behavior.
6. A __________ is an articulation of a simple criterion or characterization of what the leader sees the company must become to establish and sustain global leadership.
Answer: Leaders Vision
7. Woodstock Inc. expects to own a building for 5 years, and then sell it for $1,500,000 net of taxes, sales commissions, and other selling costs. Woodstock's cost of capital is 11%. How much will the sale of the building contribute to the NPV of the project?
Answer: $890,177
8. A correlation value
1. The market opportunities most relevant to a particular company are those that Answer: offer the best growth and profitability.
2. Printing Equipment (NPE) produces equipment that helps to print newspapers and magazines. The company sells directly to printers and through wholesalers. Its salespeople negotiate prices with individual customers and often have to match competitors' prices. NPE has a new product, the Gutenberg NP201, with some competitive advantages now, but competitors are expected to follow quickly with similar products. The new product is being introduced into a market with elastic demand. In regard to freight charges for its equipment, NPE's invoice reads, "Seller pays the cost of loading equipment onto a common carrier. At the point of loading, title to such products passes to the buyer, who assumes responsibility for damage in transit, except as covered by the transportation agency." Answer: Skimming pricing
3. One reason for international investment is that Answer: the economies of many countries are growing faster than that of the U.S.
4. In what situations are notes payable used in lieu of accounts payable? Answer: To give the lender formal proof of the obligation, for collection of debt purposes, and to require the borrower to pay interest 5. Which of the following statements about ethical behavior in business is true? Answer: The legal environment sets the maximum standards of ethical behavior.
6. A __________ is an articulation of a simple criterion or characterization of what the leader sees the company must become to establish and sustain global leadership.
Answer: Leaders Vision
7. Woodstock Inc. expects to own a building for 5 years, and then sell it for $1,500,000 net of taxes, sales commissions, and other selling costs. Woodstock's cost of capital is 11%. How much will the sale of the building contribute to the NPV of the project?
Answer: $890,177
8. A correlation value