Saturday, November 9, 2019

Last month, Hill Side Markets introduced a new board game. Consumer demand has been overwhelming and appears


Ignoring which of the following will cause the NPV of a project to be underestimated?

I. option to abandon
II. option to expand
III. option to wait
IV. option to contract 
 
A. 
I and III only

B. 
II, III, and IV only

C. 
I, II, and III only

D. 
I, III, and IV only

E. 
I, II, III, and IV
Refer to section 24.6


47.
Which one of the following is an example of a strategic option for a restaurant? 
 
A. 
opening a new restaurant with a different look and an entirely different menu to see if that type of restaurant appeals to the public

B. 
deciding to close one hour earlier during the winter months due to slow sales

C. 
abandoning a menu item based on customer complaints

D. 
deciding to open only two new locations next year instead of the five that were originally scheduled

E. 
deciding to create separate lunch and dinner menus rather than have them combined on one menu
Refer to section 24.6


48.
Last month, Hill Side Markets introduced a new board game. Consumer demand has been overwhelming and appears that strong demand will exist over the long-term as young children absolutely love the game. Given this, which one of the following options should Hill Side Markets consider in respect to this game? 
 
A. 
suspension

B. 
expansion

C. 
abandonment

D. 
contraction

E. 
withdrawal
Refer to section 24.6


49.
Three months ago, Toy Town introduced a new toy for pre-school children. The store expected this toy to be an instant success and a fast moving item. To their surprise, children have zero interest in this toy so sales have been abysmal. Which one of the following options should Toy Town consider in respect to this toy? 
 
A. 
suspension

B. 
expansion

C. 
abandonment

D. 
contraction

E. 
re-introduction
Refer to section 24.6


50.
Which of the following are managerial options once a project is commenced?

I. modifying the production process
II. re-pricing the product
III. revising the marketing plan
IV. modifying the product's color and shape 
 
A. 
I and II only

B. 
III and IV only

C. 
I, II, and III only

D. 
II, III, and IV only

E. 
I, II, III, and IV
Refer to section 24.6

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