Certified Public Accountant (Business Environment amd Concepts)

Choice "c" is correct. In the extended supply chain stage of supply chain management, integration moves external to the firm to involve those outside the firm who are able to work as a unified team in an attempt to
obtain slow, profitable growth.
Choice "a" is incorrect. In the cross-functional teams stage of supply chain management, the firm's management will turn its attention to consolidation of the various departments that make up operations in order to solve the firm's problems, and the focus will be on customer service.
Choice "b" is incorrect. In the integrated enterprise stage of supply chain management, the firm's management will move away from simple consolidation of its operations to an internally-integrated supply chain, which all work together towards the main business issue of the cost of customer service.
Choice "d" is incorrect. In the supply chain communities stage of supply chain management, the extended supply chain forms a single competitive entity with a synchronized supply chain and a complex system of networks.

Choice "b" is correct. Residual income is the segment margin of an investment center after deducting the imputed interest (hurdle rate) on the assets used by the investment center.
Choice "a" is incorrect. Return on investment is the ratio of income earned to the investment.
Choice "c" is incorrect. Operating income is not well defined, but is generally the income from operations for the entire organization, not a segment.
Choice "d" is incorrect. Return on assets is the ratio of income produced to assets employed (not the amount invested).

Choice "d" is correct. The demand curve for any individual oligopolist is kinked sharply downward. This occurs because, in oligopoly market conditions, the other firms in the market will match any price reduction so they do not lose market share but will not match any price increase of an individual firm.
Therefore, for the individual firm attempting to raise its prices beyond equilibrium, consumers will quickly buy from other firms in the market and demand will drop off sharply creating a kinked demand curve.
Choices "a", "b", and "c" are incorrect, per the above Explanation.

Choice "d" is correct. Real GDP per capita is real GDP divided by population. Real GDP per capita is typically used to compare standards of living across countries or across time. By dividing real GDP by population, this measure adjusts for differences in the size of countries and for differences in population over time.
Choice "a" is incorrect. Government spending is not a measure of the standard of living of a country.
Choice "b" is incorrect. Countries with larger populations tend to have higher levels of real GDP. This however does not mean they have a higher standard of living. To adjust for differences in population, real GDP per capita is typically used to compare standards of living, not real GDP.
Choice "c" is incorrect. Real consumption expenditures are only a part of real GDP and thus do not measure all economic activity. Furthermore, real consumption expenditures do not adjust for differences in population. It is therefore not used as a measure of the standard of living.

Choice "d" is correct. Yes, CyberAge should use trade credit and continue paying at the end of the credit period, if the cost of alternative short-term financing is more.
Choices "a", "b", and "c" are incorrect, per the above Explanation.

Choice "d" is correct. Demand is elastic if a decline in price (P) results in an increase in total revenue (TR);
or if an increase in P results in a decline in TR. On the other hand, if demand is inelastic, a decline in P will result in a decline in TR or an increase in P will result in an increase in TR.
First, the total revenues at both the new and the previous rate must be computed. The (new or previous) rate* average games played (AGP) = the total revenue. As a result, TR at the previous rate (PR) is 800 for regular weekday (RW), 900 for senior citizen (SC), and 3315 for the weekend (WE). TR at the new rate (NR) is 770 for RW, 656 for SC, and 4460 for WE.
So, demand for RW and SC is elastic because the increase in P results in a decline in total revenue. The demand for WE is inelastic because the increase in P results in an increase in TR.
As a result, choices "a", "b", and "c" are incorrect.
Note: if TR remains constant after a change in P, the demand is unit elastic.

Choice "c" is correct, as it is not a factor that would cause market competitiveness to be even stronger.
Choices "a", "b", and "d" are incorrect because they are all reasons that competition becomes an even stronger force that impacts the firm's profitability. The following are situations that would cause competition to be an even stronger force impacting the profitability of a firm: ?The market is not growing fast.
?There are several equal-sized firms in the market.
?Customers do not have strong brand preferences.
?The costs of exiting the market exceed the costs of continuing to operate.
?Some firms profit from making certain moves to increase market share.
?The various firms in the market use different types of strategic plans.

Choice "c" is correct. Government price regulations in competitive markets that set maximum or ceiling prices below the equilibrium price will create shortages of that product in the short run because quantity supplied will be less than quantity demanded at that price.
Choice "a" is incorrect. Quantity demand will increase at the lower price.
Choice "b" is incorrect. Quantity supplied will decrease at the lower price.
Choice "d" is incorrect. A price set below the market's equilibrium price causes shortages, not surpluses, per the graph above.

Choice "d" is correct. Management would select a high hurdle rate for certain projects to factor risk into its consideration of projects. The higher hurdle rate discounts future cash flows more, creating a smaller present value. By "devaluing" the cash flows of certain projects, risk has been compensated for.
Choices "a" and "b" are incorrect. The method and cost of funding are independent of the hurdle rate for screening investments.
Choice "c" is incorrect. If capital investment proposals involve average risk, no adjustment upward is needed for risk.

Choice "d" is correct. The articles must set out the corporation's authorized shares.
Choice "a" is incorrect. Quorum requirements, if stated at all, usually are in the bylaws; they need not be included in the articles of incorporation.
Choice "b" is incorrect. The articles need not include the names of stockholders.
Choice "c" is incorrect. The RMBCA has eliminated the concept of par value and so does not have a requirement that par value be established in the articles.